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…
If your vehicle is leased by your company, with finance obtained for that lease, your finance company will register a security interest over your company. Often, the vehicle registration is in your name personally and not the company name. What happens when the company ceases to trade and/or is placed Read more…
Situations can arise where a payment is made by one party to another party by mistake. This occurs, for example, where a debtor makes a payment to the incorrect entity within a group of companies, a bank remits funds to the account of an unintended recipient, or a finance company makes payment to a supplier of equipment based upon forged invoices. (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…)
The judgment of Independent Contractor Services (Aust) Pty Limited ACN 119 186 971 (in liquidation) (No 2)  NSWSC 106, delivered on 23 February 2016, held that a liquidator appointed to a company, which acts solely as the corporate trustee of a trust, must:
1. approach the Court to obtain approval of the liquidator’s remuneration and the liquidator’s disbursements (which the liquidator has a right of indemnity for in priority to trust creditor claims); and
2. distribute trust assets to creditors equally, including employee claims, with no special priority as set out in the statutory order of priority codified by section 556 of the Corporations Act 2001 (Cth).
HOW DO YOU RECOVER A DEBT THAT REMAINS OUTSTANDING PAST THE SPECIFIED TERMS/DATE OF PAYMENT?
Each customer will respond in a different way to phone calls, demands, legal proceedings, entry of Court judgments and enforcement of judgments, which may be by way of bankruptcy proceedings on an individual, or liquidation/winding up proceedings on a company debtor. (more…)