In brief
The courts were busy in the second half of 2021 with developments in the space where insolvency law and environmental law overlap.
In Victoria, the Court of Appeal has affirmed the potential for a liquidator to be personally liable, and for there to be a prospective ground to block the disclaimer of contaminated land, where the liquidator has the benefit of a third-party indemnity for environmental exposures.1
In brief
Australia's borders may be closed, but from the start of the pandemic, Australian courts have continued to grapple with insolvency issues from beyond our shores. Recent cases have expanded the recognition of international insolvency processes in Australia, whilst also highlighting that Australia's own insolvency regimes have application internationally.
Key takeaways
In brief
With the courts about to consider a significant and long standing controversy in the law of unfair preferences, suppliers to financially distressed companies, and liquidators, should be aware that there have been recent significant shifts in the law about getting paid in hard times.
Le dépôt des comptes annuels est l'une des obligations légales les plus importantes pour les sociétés. En effet, à défaut du dépôt des comptes (dans le délai légal), la responsabilité des administrateurs peut être engagée. Ce manquement peut entraîner de lourdes conséquences ... même si cela ne se produit qu’une fois. Et un homme ou une femme prévenue(e) en vaut deux. Il va de soi que vous ne voulez pas vous réveiller avec une société qui a été dissoute judiciairement alors que vous y avez encore des actifs et des activités.
De jaarrekening neerleggen is een van de belangrijkste wettelijke verplichtingen van vennootschappen. Meer nog, bij niet (tijdige) neerlegging komt de aansprakelijkheid van bestuurders in het gedrang. Vennootschappen die hun jaarrekening niet tijdig hebben neergelegd riskeren verregaande gevolgen … zelfs na één keer. En een gewaarschuwd man of vrouw is er twee waard. U wil niet wakker worden met een vennootschap die gerechtelijk ontbonden werd terwijl u daar nog activa en activiteiten in hebt.
In brief
In brief
Creditors commonly find that their applications to wind up a company are suddenly deferred at the last minute by the appointment of a voluntary administrator. Now, in the early days of the small business restructuring (Part 5.3B) process, the courts are already grappling with those circumstances in the context of that new regime. At the time of writing1, only four restructuring appointments under Part 5.3B have been notified to ASIC. Two of them have been the subject of court proceedings.
The resulting decisions reveal:
In brief
The new small business insolvency reforms enacted by the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) (Corporations Amendment Act) - which inserts a new Part 5.3B into the Corporations Act 2001 (Cth) (Corporations Act) - are due to come into effect on 1 January 2021.
In brief
The new small business insolvency reforms enacted by the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Corporations Amendment Act) - which inserts a new Part 5.3B into the Corporations Act 2001 (Cth) (Corporations Act) - are due to come into effect on 1 January 2021.
In brief
The Federal Court has ordered that an insolvency professional be appointed to act as a referee and to decide questions of insolvency in relation to a series of alleged unfair preferences, rather than have the judge undertake that task.
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