Important rules in reviewing registrars’ sequestration orders

Chief Justice James Allsop of the Federal Court of Australia has written, both in his judgments and extra-judicially,[1] of the fundamental importance of personal bankruptcy law in our legal system, and as to the ‘human consequences that attend the change of status and the change of lives of people who are made bankrupt’.[2] That importance […]

Preferences paid by company under a DOCA – based upon a reading of the section

A company under a 2013 deed of company arrangement made payments to the Deputy Commissioner of Taxation. The deed was terminated in 2017 and the company went into liquidation. The liquidators successfully recovered the payments from the DCT as unfair preferences. Justice Middleton of the Federal Court of Australia applied statutory interpretation principles in coming […]

Ponzi investors suing ANZ Bank for their losses

The ANZ Bank has failed to have struck out a claim against it by investors in what was the largest Ponzi scheme New Zealand’s history – Ross Asset Management Limited (RAM). It collapsed in 2012 and its operator went to jail. Losses were around NZ$115 million with at least 700 victims, including many who were […]

Insolvency practitioner independence – law and practice

One of Australia’s insolvency bodies, ARITA, has issued a reminder to its members about the need for liquidators to maintain their independence, saying that ‘it’s the law’ and that the recent COVID-19 reforms in Australia ‘do not impact the legal position’.[1] The law and practice don’t always coincide. +++ Australia has always taken a strict […]

Cryptoassets, hot and cold wallets, and a liquidation

Was cryptocurrency ‘property’ of a company in liquidation, and was it held on trust for the accountholders? Cryptopia Ltd (in liq) originated as a ‘hobby’ which in 2014 was formed as a cryptocurrency trading exchange with ‘a short but tumultuous history’. It went into liquidation in May 2019 after suffering a serious hack and the […]

Case adjourned for COVID-19 health and property value concerns

A son’s claim under the ACT Family Provision Act 1969 sought a life interest in property of his deceased mother, which had been left to his sister, her daughter. He applied to adjourn the 30 March 2020 hearing for reasons to do with COVID-19. The background to the dispute is complicated and the subject of […]

‘Unhappy’ delay in an insolvent winding up

A NSW Judge was ‘unhappy’ about delay in a solvency report being prepared for the defendant, in response to what had become a creditor’s ‘aged’ winding up application based on the defendant’s non-compliance with a winding up demand. On an application for a further adjournment, to 15 June 2020, the Judge described the variable evidence […]