What is a Creditor’s Voluntary Liquidation?

The liquidation of a company that is insolvent can be initiated two ways: -         By a creditor who makes a court application usually relying on the presumed insolvency of the company due to the non-compliance by the company with a Creditor’s Statutory Demand; or -         By the company itself realising that it is insolvent and unable [...]

By |2021-11-24T12:21:46+11:00November 24th, 2021|Insolvency|0 Comments

What is a Members’ Voluntary Liquidation?

A Members’ Voluntary Liquidation (MVL) is a voluntary form of liquidation commenced by the shareholders of a company that is solvent and so able to pay its debts. Once the company’s assets are sold and the debts and costs of the liquidation have been paid, the balance of monies available are distributed to the shareholders. [...]

By |2021-10-19T13:01:42+11:00October 19th, 2021|Insolvency, Uncategorized|0 Comments

Serving a Bankruptcy Notice – Get it done right

A Bankruptcy Notice could be served in a variety of ways under regulation 16.01 of the Bankruptcy Regulations including the now antiquated method of being "sent by facsimile ...". Well, regulation 16.01 has moved address to now be known as regulation 102 which now identifies the methods of service as follows: Service of documents [...]

By |2021-08-17T11:06:40+10:00August 17th, 2021|Debt Recovery, Insolvency, Uncategorized|0 Comments

What is a Creditor’s Statutory Demand?

The minimum balance of $4,000 to issue a Creditor's Statutory Demand has commenced. What is a Creditor's Statutory Demand? Well, a Creditor's Statutory Demand is a demand for payment issued pursuant to the Corporations Act 2001 that requires payment within 21 days of service of the Demand. The recipient could also negotiate an arrangement [...]

By |2021-07-07T17:11:41+10:00July 7th, 2021|Insolvency|Comments Off on What is a Creditor’s Statutory Demand?

Insolvency tsunami?

The Deputy Commissioner of Taxation recently issued an application to wind up a company. With actions by the Deputy Commissioner predicting many insolvency events, is this the start of an insolvency tsunami that many had predicted would eventually hit our shores following the Covid 19 affected economic downturn? f you or your business starts [...]

By |2021-07-07T14:00:59+10:00July 7th, 2021|Insolvency|Comments Off on Insolvency tsunami?

Making a claim for preference payments

The Full Federal Court has recently moved the goalposts with regard to recovery by a liquidator of preference payments under Part 5.7B of the Corporations Act 2001 (“the Act”). In the decision of Badenoch Integrated Logging Pty Ltd v Bryant [2021] FCAFC 64, the Court has put an end to what is known to [...]

By |2021-06-24T12:11:58+10:00June 24th, 2021|Debt Recovery, Insolvency|0 Comments

Creditor’s Statutory Demand

The minimum amount for the issue of a Creditor's Statutory Demand will soon be increasing from $2,000 to $4,000. The COVID19 pandemic amendments lifted the minimum to $20,000 before returning it to $2,000. With the minimum amount to issue a Bankruptcy Notice rising to $10,000, raising the CSD limit to only $4,000 seems disproportionate. [...]

By |2021-06-24T12:19:20+10:00June 23rd, 2021|Commercial Litigation, Insolvency|0 Comments

Dispute resolved

Our first client walked away a happy lady after facing a protracted dispute over control of her company with two other shareholders. With the prospect of lengthy and costly court proceedings to obtain the shares or put the company into liquidation, an agreement was made for the purchase of the shares for a reasonable [...]

By |2021-06-24T12:22:53+10:00June 23rd, 2021|Commercial Litigation, Insolvency|0 Comments
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