In a recent case, the Victorian Supreme Court said that an accountant ‘would know well that a statutory demand involves strict time frames for response and potentially very significant consequences for a company’. The accountant failed to take appropriate steps to inform the company of the statutory demand.

The statutory demand process

If a company does not comply with a statutory demand within 21 days of service, it is deemed to be insolvent and the creditor may proceed to wind up the company.

A recent court decision considers the legal principles and sufficiency of evidence when a court-appointed receiver seeks approval of their remuneration.

A court-appointed receiver needs court approval for the payment of their remuneration. The receiver has the onus of establishing the reasonableness of the work performed and of the remuneration sought.

A recent High Court decision in Mac Interiors[1] determined whether a company needs to be formed and registered in this jurisdiction in order to enter into the examinership rescue process.

Mac-Interiors Limited (the "Company”), which has its registered office in Newry, Co. Down, Northern Ireland, presented a petition to the Irish High Court for the appointment of an examiner. Where the registered office of the Company is outside Ireland it does not fall within the definition of a 'company' under the Companies Act, 2014 being one which is formed and registered within the State.

The Corporate Enforcement Authority (CEA) has recently issued an information note, which provides guidance to directors in respect of early warning tools, director's duties and restructuring processes for companies in financial difficulty.

On Friday, 29 July the Minister for Enterprise, Trade and Employment signed into law the European Union (Preventative Restructuring) Regulations 2022 (the "Regulations").

This case was an emergency interlocutory application by Mr Hennessy to prevent a receiver – Ken Tyrrell – and Everyday Finance DAC (the "Defendants") from taking possession, marketing and/or selling charged lands in County Laois (the "charged lands" or the "lands").

Although there is no technical requirement for a judgment to apply to make a debtor a bankrupt (as confirmed by the Supreme Court in Harrahill v Cuddy[1]), the Court has a very wide discretion to refuse to issue a bankruptcy summons. Therefore, an applicant will typically rely on a judgment to ground a bankruptcy petition.

Background

The High Court recently extended the bankruptcy period of an Irish businessman to a total of 13 years.

The usual bankruptcy term is one year, however this can be extended in cases of non-cooperation or non-disclosure of assets with the maximum term being 15 years.

On Monday 8 November, the High Court imposed one of the longest ever disqualification periods for a company director. The Court held that this was "one of the most extreme cases of using a company for [oil] laundering", and granted an application on behalf of the liquidator of Gaboto Limited for the disqualification of the two directors for a period of fifteen years.

A Supreme Court in Australia has dismissed an application by a UK company’s moratorium restructuring practitioners for recognition of a UK moratorium and ordered that the company be wound up under Australian law.

The decision provides insights into the interaction between cross-border insolvencies and the winding up in Australia of foreign companies under Australian law.

Introduction

In the matter of Hydrodec Group Plc [2021] NSWSC 755, delivered 24 June 2021, the New South Wales Supreme Court: