Members’ and creditors’ voluntary liquidation – purpose and liquidator powers

Company shareholders are able to resolve by special resolution (75%) that their company be placed into voluntary liquidation pursuant to section 491 of the Corporations Act. This may occur because the company is insolvent, and directors wish to avoid any potential insolvent trading claims against them personally, or the business Read more…

Avoiding direct inconsistency between the Corporations Act and State/Territory laws

In the decision of Linc Energy Ltd (In Liq) [2017] QSC 053, Justice Jackson found that the pre-existing Queensland environmental laws have priority over inconsistent Commonwealth Corporations Act disclaimer provisions.

The matter involved the liquidator’s right under the Corporations Act to disclaim onerous property pursuant to sections 568 and 568D of the Corporations Act, and the pre-existing State-based environmental obligations imposed upon companies. (more…)