Back to Basics: Insolvency Agreements
In Australia, informal agreements, debt agreements, and personal insolvency agreements are all alternative options to bankruptcy for individuals facing financial difficulties. However, each one operates differently, and has different benefits. Informal agreements are private arrangements between an individual and their creditors to repay debts. They are not legally binding, and there is no protection from creditors. […]
Deregistering Your Company – A Warning for Directors
When a business is no longer trading and the paperwork, fees, and obligations keep piling up, deregistering a company can look like a clean exit. A simple form, a small ASIC fee, and the company disappears from the register. On the surface, it feels like closure. But for directors, deregistration of a company is a […]
Is this business in trouble? Spotting danger on the horizon
Accountants and bookkeepers often have the first opportunities to observe changes in a business, both positive and unfortunately negative. By getting involved with their clients through asking questions and testing their clients’ knowledge of the business and its key performance indicators, they can spot the danger signs that trouble is approaching or at hand. Typically, […]
Restructuring Case Study: Civil Engineering Business
On 5 August 2022, Stephen Dixon and Trent Hancock were appointed as Joint and Several Administrators of two (2) entities operating within the civil engineering industry. The entities’ business operations extended across Victoria and Queensland and were respectively managed by the Companies joint directors. The entities operated alongside other entities within a group structure and […]
IN FOCUSDPNs – What you need to know and avoiding personal liability
A director penalty notice, or DPN for short, is one of the favourite tools of the Australian Taxation Office (“ATO”) when it comes to pursuing directors. However, DPNs often come as a surprise to directors trying to maintain their business in the post-pandemic economy. DPNs are especially important to understand now that the ATO has […]
Case Study: Bayside Gate Frames Pty. Ltd. (Subject to Deed of Company Arrangement)
Case Study: Bayside Gate Frames Pty. Ltd. (Subject to Deed of Company Arrangement) trading as “Bayside Fencing Products”, “Direct Factory Outlet Concrete Sleepers, Landscaping and Building Products” and “Concrete Sleeper Retaining Walls Brisbane” ACN 146 901 706 (“the Company”) The Company commenced in 2010, initially selling gate frames. In 2016, the Company commenced re-selling concrete […]
Impacts of voidable transfers into Superannuation
The available funds of an undischarged bankrupt that are in a regulated superannuation fund as at the date of bankruptcy, are generally protected in bankruptcy and not considered to be divisible property recoverable by the Trustee pursuant to Section 116 of the Bankruptcy Act 1966 (“the Act”). Even with the protections offered to the Debtor’s […]
Back to basics: What is a Creditors Voluntary Liquidation?
A creditors voluntary liquidation or CVL, as commonly referred, is the process whereby the assets of a corporation are realised in an orderly manner and the proceeds distributed amongst creditors of the company in satisfaction of their claims against the company. Any surplus funds are subsequently returned to its members. A creditors voluntary liquidation requires […]
Sneakerboy Group of Companies Appoints Voluntary Administrator
The Sneakerboy Group of Companies today announced that Stephen Dixon of Hamilton Murphy Advisory has been appointed as Voluntary Administrator to the Companies. The Voluntary Administration appointment has been made due to short term financing difficulties being experienced by the Company. The difficult but prudent decision has been made to initiate the Voluntary Administration […]
Mutual Set-Offs and unfair preference claims
Creditors are no longer entitled to utilise the right of set off pursuant to Section 553C against their outstanding debt owed in a liquidation as a defence against an unfair preference claim commenced by a liquidator. What is Mutual Set-Off? A Mutual Set-Off occurs when a company and a creditor have mutual dealings with each […]