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 […]
HMA Budget Byte: Business Edition
Tax relief for small businesses means they have more money to take on an extra worker, offer an extra shift or buy a new piece of equipment. The Government will deliver more than $21 billion in tax cuts to small businesses from 2015-16 to 2024-25, with around $2.6 billion flowing in 2022-23. This includes lowering […]
The Art of Subrogation
Subrogation occurs when a person or a creditor agrees to pay creditors of the insolvent company in consideration for the right to subrogate into the position of that creditor. An example of subrogation in insolvency is, when a creditor (typically, a related party) elects to pay employee entitlements owed by the company in consideration for […]
New Director ID Requirements
Effective November 2021, the Federal Government has introduced a requirement for Directors to apply for a unique identification number (Director ID). The Director ID will be attached to a director permanently, even if they cease to be a director, change their name, or move interstate or overseas. All Directors will be issued with a unique […]
ATO to start using new weapon to pressure businesses to act on tax liabilities
The ATO will begin sending letters to businesses with over $ 100,000 in tax debt, warning them of the agency’s intention to disclose tax debt information to credit bureaus if they fail to manage their debt within 28 days. In late 2019 the government passed a law stating businesses that have one or more tax […]
2021-22 Federal Budget
The 2021-22 Federal Budget was presented this week and as expected health, aged care and our economic recovery plan were the main focus. Australia has bounced back from the COVID-19 pandemic faster than expected and this has given the government more money to play with than originally expected. Australia’s unemployment rate has dropped to 5.6% […]
ATO resumes debt recovery – Directors’ potential personal exposure
With the end of Jobkeeper and a growing $53 billion debt book, the ATO has announced that from the end of March 2021 it will be focussing on recovering taxation debts, including “taking debt and lodgement compliance action”. Now is the time for Directors and their advisors to ensure they fully understand the tax laws […]
Benefits of Member Voluntary Liquidation
Hamilton Murphy Advisory encounters many situations where long established “asset rich” company structures continue to be maintained where it may be preferable and more beneficial that that the assets now be in the hands of the shareholders. Members Voluntary Liquidation enables the company assets to be distributed (transferred) to the shareholders with the following potential […]