Everything or Nothing! That is what the Queensland Court of Appeal has told us recently when it comes to assessing what a creditor is really owed for the purposes of standing to wind up a company

Background

A dispute arose between two parties involved in the management of Treadtel International Pty Ltd (Treadtel) whereby a Mr Cocco asserted that one of the two issued shares in Treadtel was held on trust for his benefit by the sole director’s wife, Mrs Crosher, because of an alleged share sale agreement.

In Suk v Hanjin Shipping Co Ltd [2016] FCA 1404, the Federal Court (a) provided guidance on how courts are to determine what stay arises upon recognition of foreign main proceedings under the Cross-Border Insolvency Act 2008; and (2) demonstrated that such recognition can cause maritime lien actions to be stayed.

Winding up a company when you are the trustee in bankruptcy of the sole director and shareholder can be more complicated than you think.

An Australian Tale

2017 is shaping up to be a challenging year for insolvency practitioners in Australia, from the Insolvency Law Reform Act 2016 (Cth) (ILRA), which comes with a raft of reforms to practitioner remuneration and creditors' powers, to the new ASIC 'user pay' funding model which could potentially impact negatively on insolvency practitioners and the Fair Entitlements Guarantee (FEG) Recovery Program's pursuit of claims against insolvency practitioners.

Today, certain provisions of the Insolvency Law Reform Act 2016 will take effect. Amongst these is s100-5 of the new Insolvency Practice Schedule (Corporations), which will be included as a schedule to the Corporations Act 2001. The same provision (with identical numbering) is contained in the Insolvency Practice Schedule (Bankruptcy), which is a schedule to the Bankruptcy Act 1966.

When we began analysing in depth the possibility of Britain exiting the European Union, 18 months prior to the June 2016 referendum, the HERBERT businessSMITH FREEHILLS consensus w07as very muchSECTION TITLE that Brexit was a remote prospect that either would never happen or not matter.

Fast forward just over two years and the reality could not be more different. In this updated edition of our Brexit legal guide, we take stock of the present situation, summarising the key developments since last year's vote and what is to be expected in the months ahead. 10 33 99

A recent decision of the New South Wales Court of Appeal serves as a timely reminder of the costly consequences of failing to register a PPSR security interest in leased goods.

Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2017] NSWCA 8

In March 2013 General Electric International Inc (GE), the appellant’s predecessor in title, agreed to lease turbines to Forge Group Power Pty Ltd (Forge Group).

The increase in the availability of alternate capital in Australia over the past decade has provided a landscape for well-tested global restructuring techniques to be applied locally. This includes 'loan to own' strategies.

Last week the Supreme Court of New South Wales provided another timely reminder to ensure that all security interests are correctly registered on the Personal Property and Securities Register (PPSR) through the decision In the matter of OneSteel Manufacturing Pty Ltd (administrators appointed) [2017] NSWSC 21.

The facts

Alleasing Pty Ltd leased a crushing and screening plant (for approximately $4 million annually in rent) and spare parts for the crusher to OneSteel Manufacturing Pty Limited.

Whether an insured had misrepresented and/or failed to disclose to an insurer that its professional services encompassed directors and officers services.

In Issue

• Non-Disclosure and misrepresentations by insureds
• Consideration of sections 21 and 26 of the Insurance Contracts Act 1984 (Cth)

The Background