When a business is struggling, the question most often asked by directors who are considering Company liquidation, is whether they will be held personally liable to pay its debts. Ordinarily, the purpose of having a company is to separate business risks and company debts from … Read More
What happens when you liquidate a company?
A liquidator is appointed, generally because it can’t pay its debts. At the time of appointment, the liquidator becomes the proper officer of the company. At the same time, the company directors powers are immediately suspended. The powers of the liquidator are laid out in Section 477 … Read More
Accessory Liability
Both the Corporations Act and the Fair Work Act provide for accessory liability. Section 79 of the Corporations Act states: Section 79 Involvement in contraventions A person is involved in a contravention if, and only if, the person: has aided, abetted, counselled or procured the contravention; or has induced, whether by threats … Read More
What happens if my Company has an outstanding tax debt?
Company Liquidation is an option but before pursuing that, the process of debt collection used by the Australian Taxation Office will usually involve; Issuing reminder letters that state outstanding lodgements or debts exist. Issuing more serious reminder letters indicating possible penalties and interest charges that … Read More
ASIC 2017/2018 Report on Insolvencies Just Released
ASIC has just released its Report on Insolvencies for 2017/2018. 84% of insolvencies involve small companies with: 20 or fewer employees Assets of $100,000 or less 39% with liabilities less than $250,000 61% with liabilities greater than $250,000 97% of all small company liquidations result … Read More
Director Identification Numbers Looking Likely
Have Your Say Company directors will be compelled to register for a lifetime ID number or face penalties including a year in prison under a Commonwealth plan to fight phoenixing activity. Support for company ‘director identification numbers’, known as DINs, has long … Read More
All About Phoenix Transactions and Scams
Porsche, Range Rover and houses: How Nissan-driving Tim got caught in scam By Sarah Danckert Sydney Morning Herald Article 28 August 2018 Hit with a tax bill, locksmith Tim Batchelor thought the best thing to do was to follow a family friend’s advice and get some … Read More
Collapse of book distributor strands hundreds
Collapse of book distributor strands hundreds By Linda Morris 19 August 2018 — 5:31pm The collapse of a “stalwart” Melbourne book distributor has stranded hundreds of tiny publishers and self-published authors in the lead-up to the Christmas buying spree. Dennis Jones & Associates has been the … Read More
The Perils of Loud Letters of Demand
I thought I would pass on an article written by the solicitor, leading insolvency commentator and author of the Insolvency Bible, Michael Murray. Source: The perils of loud letters of demand A creditor being paid its debt following a letter of demand can be a Pyrrhic … Read More
Defending Unfair Preference Claims
In every liquidation, Liquidators seek to identify and recover monies paid to creditors where it can be shown the recipient knew or suspected a Company was insolvent at the time payment was made. The primary purpose of the law of Unfair Preference Claims is to … Read More