Tag: 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
Unfair Preference Claim by Liquidator
Sections 588FA (1), 588FC and 588FE of the Corporations Act together prescribe the elements necessary for a liquidator to establish in order to be successful in a preference recovery action. It is useful to set out those provisions in full. Section 588FA (1) 588FA(1) [What is unfair preference] A transaction is an unfair preference given…
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