In our February 2013 issue of On The Beam, I discussed the Directors’ defences for Insolvent Trading pursuant to Sections 588H, 1317S and 1318 of the Corporations Act 2001 (Cth) (“the Act”). However as I have mentioned in the previous newsletter, the defences that I have listed may seem very useful and easily applicable but in reality, the Courts will ultimately look to the legislative intent of the Insolvent Tradi [ More ]
In today’s modern world of business, individuals constantly face ethical dilemmas; Directors in a Company have to make daily decisions which might result in the Company performing corporate misconduct which will harm certain individuals or parties. As mentioned in the instalment of Directors and “Directors” in our September 2012 issue of On The Beam, every Director or individual who is considered a “Director” o [ More ]
In our April 2012 issue of On The Beam, I discussed the scope of who is considered a “Director” of a Company under the Corporations Act 2001 (Cth) (“the Act”). However, this analysis was merely the precursor to a much broader topic, Directors’ Duties and Insolvent Trading.
Sadly, all too often the issue of Directors’ duties are only really considered when a Company is, or may be, insolvent [ More ]
Over the past month, we have witnessed several major construction entities enter into some form of External Administration by the appointment of either Receivers and Managers or Voluntary Administrators, or in extreme cases, Liquidators. These appointments have resulted in the temporary halt to multi-million dollar projects, including the $2 billion redevelopment of Sydney Central Park, thereby impacting on the financial viability of a number [ More ]
As we are all aware, Costs Orders made in an Insolvency situation rank a priority in External Administrations, including individual Bankruptcies. However, for an External Administrator/Trustee in Bankruptcy and the Parties involved, it is very important to consider the date when the Cost Order was made as this determines the admissibility of the Claim in the Administration.
I believe most of us would be familiar with the lead [ More ]
As we have discussed previously, when a company is facing difficulty, one of the first places stakeholders look for answers is at the head of the company, the directors. But what happens when the director isn’t aware of the affairs of the company and is only a mere figurehead?
Under Section 9 of the Corporations Act 2001 (“the Act”), the definition of a director has been given a broad scope to include anyone who is “appointed t [ More ]