Japan

Report published on ensuring fair and timely disclosure of information to investors. The FSA announced that the Task Force on Fair Disclosure Rule of the Working Group on Financial Markets of the Financial System Council has published the “Report - Ensuring fair and timely disclosure of information to investors.” (3/3/2017)

Hong Kong

Yesterday, in a unanimous 5-0 decision, the New South Wales Court of Appeal knocked out Justice Brereton’s remuneration decision in Sakr Nominees Pty Ltd [2016] NSWSC 709, the sixth in a series of controversial decisions on insolvency practitioner remuneration.

In a much anticipated judgment, the Court of Appeal of the Supreme Court of NSW has delivered good news for insolvency practitioners concerning their remuneration. This news will be particularly welcome for those practitioners who accept appointments over small to medium sized companies.

WHO SHOULD READ THIS

• Insolvency practitioners, mortgagees or other secured creditors and their advisors.

THINGS YOU NEED TO KNOW

• Whilst the foreign resident capital gains withholding provisions (FRCGW) contain insolvency exceptions that exclude most asset disposal transactions undertaken in the insolvency area, it is important to recognise that not all insolvency transactions are excluded. Transactions by a mortgagee in possession may not be excluded.

WHAT YOU NEED TO DO

This week’s TGIF considers a decision of the Victorian Supreme Court which examined the merits of appointing special purpose liquidators in circumstances where a creditor was only willing to fund investigations if the appointment was made.

What happened?

In May and June 2016, two registered education and training organisations (together, the RTOs) were placed into liquidation.

The New South Wales Supreme Court of Appeal's decision in Sanderson as Liquidator of Sakr Nominees [1] has given cause for optimism amongst insolvency practitioners. The decision confirms that the correct approach was taken by the Court inIdylic Solutions [2], bucking a trend in recent years of limiting or reducing practitioner remuneration by reference to a proportion of the funds recovered.

WHO SHOULD READ THIS

• Restructuring and insolvency professionals.

THINGS YOU NEED TO KNOW

• Understanding liabilities from a payroll tax perspective can be complex, particularly due to the broad nature of the grouping provisions.
• Unless care is taken situations may arise where restructuring and insolvency professionals will be grouped with client entities, potentially exposing personal entities to joint and several liability for client entity debts.

WHAT YOU NEED TO DO

A spate of recent decisions approving liquidators’ remuneration on an ad valorembasis had caused some trepidation amongst insolvency practitioners facing the prospect of court fee approval.

Court of Appeal sets the record straight

The key point

On March 9, 2017, a full bench of the New South Wales Court of Appeal handed down a significant decision affecting approach to judicial review and approval of liquidator remuneration. Significantly, existing tension between decisions of different judges at first instance, and between NSW and Federal courts, has been resolved.

A recent decision by the Federal Court of Australia may be useful for liquidators faced with an application to commence or continue civil proceedings against a company in liquidation.

The decision – in brief