Category: Insolvency
Company director slammed with maximum ban
The maximum disqualification of 5 years for operating a company has been handed down to a former director, after he was found to have repeatedly breached director duties. Peter Nicholas Cook, of Sydney, was handed the penalty by the Australian Securities & Investments Commission (ASIC) in relation to his involvement in a total of…
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- Insolvency
Books of the Company
What are Books of the Company? The scope of a Liquidator’s power to demand copies of documents under Section 530A of the Corporations Act 2001 We recently assisted a client with a letter of demand received from a liquidator of a building company (in liquidation) (the “First Company”). The First Company had initially entered into…
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- Insolvency
Insolvent Trading
What is insolvent trading? Insolvent trading is an offence under the s588G of the Corporations Act 2001 that says that if a company is insolvent and a director allows the company to incur a new debt, then the director can be personally liable for the new debt incurred. The offence makes directors responsible for ensuring…
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- Insolvency
New insolvent trading safe harbour and ipso facto legislation
On 11 September 2017, two major reforms to Australia’s insolvency laws – an insolvent trading safe harbour and a restriction on the enforcement of ipso facto rights in certain circumstances – passed through the Senate. The Bill awaits royal assent. What you need to know On 11 September 2017, the Treasury Laws Amendment (2017 Enterprise Incentives No. 2)…
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- Insolvency