With continuing market volatility a number of companies remain under financial pressure. Businesses or individuals receiving payments from companies that might be financially distressed should be aware of the ability of a liquidator to apply to a court under the Corporations Act 2001 (Cth) (Corporations Act) to recover payments made to creditors in the six months prior to the appointment of a liquidator/administrator on the grounds the payment constituted an “unfair preference”.

Quick Recap on the Relevant Provisions

The High Court of Australia has confirmed that Australian Supreme Courts have the power to make orders freezing the Australian assets of a foreign company in anticipation of a possible judgment in a foreign court being obtained against that foreign company.

Background

The High Court of Australia has confirmed that Australian Supreme Courts have the power to make orders freezing the Australian assets of a foreign company in anticipation of a possible judgment in a foreign court being obtained against that foreign company.

Background

With continuing market volatility a number of companies remain under financial pressure. Businesses or individuals receiving payments from companies that might be financially distressed should be aware of the ability of a liquidator to apply to a court under the Corporations Act 2001 (Cth) (Corporations Act) to recover payments made to creditors in the six months prior to the appointment of a liquidator/administrator on the grounds the payment constituted an “unfair preference”.

Quick Recap on the Relevant Provisions