One of the most seminal decisions in bankruptcy law is the High Court decision of The Trustee of the Property of John Daniel Cummins, A Banklrupt v Cummins (2006)  HCA 6.
James Frank recently spoke at a Sydney Hills Business lunch on how the Internet has changed the business game. The following article is a summary of what he spoke about.
Whenever we speak to clients about why their business is struggling and explore restructuring options we continually hear common myths about the Voluntary Administration (VA) process. We have detailed the 5 key myths below:
Voluntary Administration is a formal restructuring process contained within Part 5.3A of the Corporations Act. It has more recently become a strategic tool used by directors to protect themselves from insolvent trading breaches but also to ‘reset the business’ in times of shock.
On 19 September 2017 the safe harbour laws commenced which enabled directors to turn around struggling companies without exposing themselves to personal liability under Australia’s insolvent trading laws.
The Personal Property Securities Register is a great tool for parties who lend money, supply goods on account or enter into asset leases. However, one common problem is the laziness of lenders or suppliers in perfecting their security interest.
Consultant Conrad Liveris released a report, based on the annual reports and websites of ASX200 companies, identifying commonalities and norms in the educational and professional experiences of CEO's. According to his analysis, the CEO candidate pool has remained narrow (despite the fact that business is increasingly global) and the pathway to become CEO has likewise remained narrow and has changed little over time. The report questions, in the context of increasing community expectations of Australian business, whether businesses should consider revisiting their approach to ensure they are recruiting the best available talent rather than sticking with the familiar.
The Sydney property market has seen enormous growth. The median price has risen by some 412% in the past 25 years. Pegged to this has been the growth in certain industries such as trades and services or manufacturing.
Currently there are 2,672,325 companies registered in Australia, therefore meaning that there at least 2,672,325 company directors in Australia. Fundamentally, the role of a director is a fiduciary in relation to the company. That means that they have a responsibility to place the companies interests before their own.
In our previous article, “What is a Statutory Demand?” we outlined what a statutory demand is and the high-level impact of not complying with it according to the Corporations Act 2001 (Cth). In this article we will explore the impact of a statutory demand from a creditor’s perspective and a debtor’s perspective.