In Short

The Situation: The economic impact of the COVID-19 pandemic has required governments around the world to provide temporary relief to companies and directors experiencing distress as a consequence of the pandemic.

The authorities have taken several measures to support businesses and employment, under the pressure of the corona crisis. Measures in relation to tax and social security, temporary unemployment and state financial support were taken. An agreement with the financial sector to grant payment facilities was reached, as well.

In Short

The Situation: Should liquidators be personally liable for the costs of unsuccessful appeals, without an entitlement to reimbursement by the company or its creditors in relation to those costs?

The Conclusion: The general rule providing a liquidator immunity from personal costs orders and entitling a liquidator to be indemnified from the assets of the company for their own costs, and for the costs of the other party, does not apply when a liquidator initiates an unsuccessful appeal.

In Short

The Situation: A liquidator can reject a "double proof" for what is, in substance, the same debt as another accepted proof of debt.

The Question: When are liquidators justified in rejecting what could arguably be a double proof?

The Federal Court of Australia rules that receivers appointed to a company in liquidation are entitled to pay employee entitlements and fees.

Companies have a lot more international debtors as a result of globalisation and internationalisation of trade, making the recovery of debts a lot harder. It is a good thing that the law is evolving more and more towards making the recovery of international debts simpler and faster.

Suppose a Belgian company has a claim on a French buyer, but the latter refuses to pay. The Belgian company therefore wants to seize the buyer's movable assets in France. Which steps should be taken to achieve this?

Suite à la globalisation et à l’internationalisation du commerce, les entreprises se voient confrontées, de plus en plus souvent, à des débiteurs étrangers, ce qui ne rend pas le recouvrement plus facile. C’est dès lors une bonne chose que la législation évolue de plus en plus vers un recouvrement plus simple et plus facile de dettes internationales.

In Short

The Situation: The statutory moratorium period for voluntary administrators to restructure an insolvent company often is too short to find a solution. Administrators frequently utilise "holding" deeds of company arrangement ("DOCAs") to extend the moratorium and "buy" time to investigate potential restructuring opportunities. A creditor challenged this practice by arguing that holding DOCAs are invalid.

The Question: Are holding DOCAs valid under the Corporations Act 2001(Cth)?

In the framework of the reform of insolvency law that entered into force on 1 May 2018, the legislator has introduced important amendments regarding the liability of the directors in case of bankruptcy. These amended liability rules apply to directors of companies and not to physical persons who operate without a corporate structure.

1. Liability claim for apparent gross fault

Dans le cadre de la réforme du droit de l’insolvabilité qui est entrée en vigueur le 1er mai 2018, le législateur a opéré plusieurs modifications importantes concernant la responsabilité des administrateurs en cas de faillite. Les règles de responsabilité révisées valent pour les administrateurs de sociétés et non pour les personnes physiques qui bien qu’étant des entreprises, n’ont pas la structure d’une société.

1. Action en responsabilité pour faute grave et caractérisée