Although section 443A(1) of the Corporations Act ("the Act") provides that Administrators are liable for the debts they incur in the performance of their functions as Administrators, a recent Western Australian judgment discusses how orders under section 447A of the Act can limit that liability.
In that case the Administrators needed funds to pay operating costs and wages, in order to maintain the business for sale as a going concern and/or to give the Administrators time to investigate alternative restructuring options.
In brief - Employees made redundant by insolvency event entitled to generous payout
Changes to the General Employment Entitlements and Redundancy Scheme (GEERS) mean that employees are probably better off being made redundant by an insolvency event rather than as a result of a normal workplace restructure.
Act puts existing GEERS scheme into legislative form
The following article outlines a number of ways to help business owners safeguard their business from sustaining losses during tough economic conditions throughout 2013.
Identify & Manage Risks
An exposure draft of the long anticipated Insolvency Law Reform Bill 2013 has been released for public comment. The Bill aims to:
The Federal Court of Australia in KASH Aboriginal Corporation ICN 108 (Administrators Appointed) No 2, held that, in certain circumstances, administrators may be granted protection from personal liability for debts incurred as part of the administration of a corporation.
Despites its recent failure in case against an administrator in a phoenixing case, ASIC could snatch long-term victory from the jaws of defeat with clear regulatory guidance for insolvency practitioners.
On 14 September 2023, the Australian Securities and Investments Commission (ASIC) released Consultation Paper 372 "Guidance on insolvent trading safe harbour provisions: Update to RG 217".
In a recent decision, Anchorage Capital Master Offshore Ltd v Sparkes [2023] NSWCA 88, lenders to the Arrium Group, a company that collapsed, have lost their appeal regarding the personal liability of the Chief Financial Officer and Group Treasurer. The NSW Supreme Court had previously dismissed the lenders' claims, and the Court of Appeal has now affirmed that decision.
Despites its recent failure in case against an administrator in a phoenixing case, ASIC could snatch long-term victory from the jaws of defeat with clear regulatory guidance for insolvency practitioners.
On 14 September 2023, the Australian Securities and Investments Commission (ASIC) released Consultation Paper 372 "Guidance on insolvent trading safe harbour provisions: Update to RG 217".