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Shares in a DOCA, Accountant's Duties to Liquidator, Receivership Priorities and Identifying Financial Stress

23 June 2015

Can deed administrators sell company shares? One of the benefits of a Voluntary Administration and Deed of Company Arrangement (“DOCA”) is the flexible restructuring options that can be promoted to creditors. New investors into an insolvent company restructuring through a DOCA may want to take an equity position in the company. In these cases the e...

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Insolvency & Corporate Governance, Director Personal Liability for Company Tax and Obligations of Silent Directors

30 March 2015

The Relationship of Corporate Governance to Insolvency Apart from being at least 18 years of age, there are no statutory, academic, business or required qualifications necessary to be appointed as a director of an Australian company. The ease with which an appointment can happen belies the raft of duties and obligations a director inherits when the...

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Trust Assets, PPSR, Statutory Demands, Liquidators Fees and Liquidation vs Deregistration

1 December 2014

Are trust assets safe if a corporate trustee is liquidated? In a majority of the insolvency appointments we undertake, we are appointed to a trustee company of a trading trust. From time to time the question is raised as to whether the trustee (now in liquidation) has the capacity to sell the assets of the trust and discharge liabilities incurred o...

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Changes to FEG, Avoiding Preferences, Restructuring and Appointee Independence

12 September 2014

Reducing redundancy payouts through FEG For many years the Federal Government’s Fair Entitlements Guarantee (FEG) Scheme and its predecessors have been a crucial lifeline providing funding for the payment of entitlements for employees terminated as a consequence of the insolvency of their employer. In the recent Federal Budget the Government announ...

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Lessons from recent retail insolvencies, phoenixing and employee entitlements

17 June 2014

Lessons from recent retail insolvencies  In recent months our office has become involved in the collapse of several significant companies operating in the clothing and food retail industries and there appears little sign of relief in this struggling business sector.  In all cases, the businesses were hopelessly insolvent by the time of our appointm...

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Business exit strategies

17 December 2013

When providing advice to directors of companies facing a cash crisis, one of the options considered is whether the business should be sold. Often the cause of the cash crisis is that the current owner(s) can’t continue to fund trading losses despite a potential turnaround looming, or don’t have the capacity to finance the working capital of a busin...

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Nobody plans on failure and nobody plans not to fail...

27 September 2013

Entrepreneurs start businesses every day with high hopes and grand visions and accountants are often criticised for being the wet rag for looking on the negative or conservative side. Drawing from our conservative side we set out below our list of reasons why businesses fail: Inadequate start-up capital No business plan The business started for the...

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New ASIC powers / Contractor insolvency / Director refused access to books and records

28 June 2013

New ASIC power to wind up abandoned companies Under the Corporations Act 2001 (Act), ASIC has the power to wind up a company on several grounds. These grounds include if ASIC believes that the company is not carrying on business, that the making of a winding up order is in the public interest or if the company’s review fee has not been paid after 1...

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