New Zealand’s changes to its insolvency laws

Proposed changes to NZ insolvency laws through the Insolvency Practitioners Bill, presently before parliament, are open for submissions until 24 August 2018.  The changes involve conflicts of interest, demand notices, reporting of ‘serious problems’ and more. Some ideas and drafting look like they have been borrowed from Australian law – some wisely, others not wisely […]

Demands by liquidators – trying their luck, or “no ifs, buts or maybes”?

If anyone receives a letter from a liquidator of a company requesting, or demanding, important information, or payment of a sum owing, the recipient should be able to make an assumption that given the position and status of liquidators (and trustees in bankruptcy, both as registered insolvency practitioners), that there is legal and factual substance […]

The perils of loud letters of demand

A creditor being paid its debt following a letter of demand can be a Pyrrhic victory, if the debtor ends up in insolvency and the liquidator or trustee demands the payment back from the creditor as an unfair preference. The liquidator or trustee has to show that the creditor reasonably suspected that the debtor was […]

The Internationalisation of Directors’ Duties – Melbourne seminar – 30 July 2018

Directors of companies that trade overseas, and directors of subsidiaries of overseas companies, may have duties imposed upon them by foreign law and be subject to the jurisdiction of foreign courts, especially where the companies are approaching insolvency.  Legal advisers have to be aware of the potential for those liabilities to arise and have to […]

Fallout from a shipping trillision – Part 2

In Part 1 of this case report, the outcome of a three ship collision – a trillision – causing the total loss of a cargo soybean meal was that the cargo underwriter, the People’s Insurance Company of China (PICC), remained liable to pay even though the particular terms in the bill of lading exempted the […]

Structural weaknesses in the Model Law on Cross-Border Insolvency?

Cross-border insolvency law necessarily tries to ensure that insolvency proceedings about a debtor in different jurisdictions are co-ordinated and fully disclosed to the court. The Model Law on Cross-Border insolvency imposes requirements on parties to ensure that. Inattention to those requirements by foreign representatives occurred in two recent cases in Australia. These were the subject […]

ASIC’s annual ‘Dashboard’ report

With the 2018 financial year over, government agencies need to prepare their annual reports, which, commonly, are becoming increasingly opaque. But two interesting reports will be those of ASIC, in relation to corporate insolvency, and AFSA, in relation to personal insolvency. As to ASIC, under the changes made under the industry funding levy legislation, and […]

ASIC’s fees – how high and counter-productive

The article in the Australian newspaper of 2 July 2018, although typically low-brow in its heading – how ASIC gouges fees for business – gives useful coverage of ASIC’s high fees for accessing essential business and company information that it holds.  In the corporate financial governance and insolvency field, it is worse than just the […]

Litigation funding of liquidators – the ALRC inquiry

The current law reform inquiry into class actions and their funding may also need to look at the funding of another type of collective litigation action, claims by liquidators in insolvency proceedings. The Australian Law Reform Commission is conducting its litigation funding inquiry with an emphasis on class action proceedings and the important role they […]