Trial decisions pending a High Court appeal in Amerind

It can be legally difficult to determine what the law is when a significant legal issue is on appeal, leaving the issue uncertain in other matters where the issue arises until the appeal is heard and resolved. That is the case in relation to the insolvency of trading trustee companies, with decisions from the Victorian […]

Liquidators – spending money to justify spending money

Charging a second fee to justify charging an initial fee might seem odd but this can be the case when the law itself requires some formal approval process for the initial expenditure. A recent court decision involved fees of over $7000+ being incurred to justify fees of around $34,000. Insolvency practitioners (IPs) must have their […]

ASIC’s liquidator regulation activities – 2017-2018

Under s 136(1)(ca) of the ASIC Act, ASIC is required to report in its annual report on its activities under Chapter 5 and Schedule 2 of the Corporations Act, and the exercise of its information gathering powers, among other activities. Although not designated under s 136, here are some insolvency comments and figures from ASIC’s […]

Litigation funding – ASIC’s submission to the ALRC

ASIC’s submission[1] to the Australian Law Reform Commission on class actions and litigation funding seemed to be a surprise to some.[2]  ASIC says that, consistent with other jurisdictions, litigation funding should be regulated as a legal service, under the control of the courts, rather than as a financial service, regulated by ASIC or other appropriate […]

NSW Registered Clubs – insolvency law change required

Registered clubs all over the country get into financial trouble, sometimes requiring the formal insolvency processes under the Corporations Act to secure their position, and potential recovery, and often urgently. Only in NSW is there a barrier to promptly accessing those processes. A recent article by Nicola Cosgrove and David Turner has repeated earlier calls […]

Too poor to be made bankrupt?

Most bankruptcies pay nothing to unsecured creditors. But there are only limited circumstances where a debtor can resist bankruptcy by claiming that they have nothing. Creditors that do petition the court to make a person bankrupt may often have some particular focus on assets transferred or undisclosed; but even then, that creditor has to share […]

‘Employee’ claim rejected – he was a contractor, and a de facto director

A ‘employee’s’ claim for payment of unpaid wages by a company in liquidation was rejected by the department under the Fair Entitlements Guarantee Act 2012 (the FEG Act). The FEG Act provides financial assistance for employees who have not been fully paid for work done for a company to which a liquidator is appointed. Directors of […]