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
Replacing a Liquidator – It Ain’t Easy!
Recent reforms under the Insolvency Law Reform Act intended to make the replacement of an External Administrator/Liquidator easier for creditors to achieve but in reality, it may have had the opposite effect. In the past, liquidations instigated by the directors/shareholders required the appointee take the … Read More
Managing Accounts Receivable in a Declining Market
Insufficient or declining sales is something that every proprietor or company director will experience at some point in the lifecycle of the business. When sales begin to slide, you may find that you are no longer in a position to cover fixed costs. Without foresight … Read More