It is a standard term of a lease or terms and conditions of trade for the supply of goods or services, that a personal guarantee be provided to ensure that a business pays its debts. A personal guarantee is usually provided by the company director and can be any or Read more…
When is a holding company liable for the debts incurred by its subsidiary company?
Holding or parent companies control the shares of other companies, being subsidiary companies. These holding companies can be liable for the debts incurred by their subsidiary companies, without having been involved in the transaction that incurred the debt. (more…)
It could happen to you.
You will only discover you have been dealing with a purple fictitious character after you have provided the service/delivered the goods and not been paid.
Below is a checklist of what to do when entering into any agreements. (more…)
CAN A DIRECTOR’S CLAIM FOR UNPAID WAGES BE SET OFF AGAINST WHAT THAT DIRECTOR OWES TO THE COMPANY?
Once a company is placed into liquidation, section 556 of the Corporations Act (2001)(Cth) (Corps Act) sets out the order for payments of debts due and owing by the company.
We recently advised a client on the importance of entering into written, enforceable agreements with its customers.
Our international client had supplied stock over a number of years to an Australian-based customer. However, our client’s written supply agreement was entered into with a ‘group of companies’, described here in generic terms as follows (the ABC Group) and not with an actual legal entity, being either an individual or a company with an Australian Company Number (ACN). (more…)
DOES GST APPLY TO SETTLEMENTS OR JUDGMENTS OF COURT LITIGATED CLAIMS?
When parties enter into Terms of Settlement for a litigated claim, it is not in itself a taxable supply which attracts GST. (more…)
This article provides a brief overview of some key provisions in the Personal Property Securities Act 2009 (Cth) (PPSA). In particular, it will cover:
- The definition of personal property under the PPSA;
- Examples of personal property;
- Questions to consider; and
- What business owners should do in response to the PPSA.