This week’s TGIF considers the case ofIn the matter of Bean and Sprout Pty Ltd [2018] NSWSC 351, an application seeking a declaration as to the validity of the appointment of a voluntary administrator.

What happened?

On 7 December 2018, Mr Kong Yao Chin (Chin) was purportedly appointed as the voluntary administrator of Bean and Sprout Pty Ltd (Company) by a resolution of the Company.

This week’s TGIF is the second of a two-part series considering Commonwealth v Byrnes [2018] VSCA 41, the Victorian Court of Appeal’s decision on appeal from last year’s Re Amerind decision about the insolvency of corporate trustees.

In June 2017, the New South Wales Parliament introduced the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW Act), designed to clarify the rights of claimants to proceed directly against insurance companies. But in the context of insolvent corporations, has it created more problems than it has solved?

The sole shareholder of several closely held corporate entities engages in a fraudulent transfer by extinguishing one entity’s right to payment from a third party in exchange for the release of liabilities owed by other entities to that same third party. In Motorworld, Inc. v. William Benkendorf, et al., __ N.J. __ (Mar. 30, 2017), the New Jersey Supreme Court voided such a transfer against a Chapter 7 debtor corporation whose sole asset was a $600,000 loan receivable purportedly cancelled by the release.