The Personal Property Securities Register (PPSR) commenced operation on 30 January 2012. All seven-year registrations made on the:
- old state-based motor vehicle registers, immediately before the PPSR commenced; or
- PPSR immediately after it commenced,
will begin to expire shortly and this will have adverse consequences for secured parties who do not act to renew.
2006 was a boom year for Great Southern Plantations: it raised $1.141 billion from selling cattle droves, olive groves and woodlots to 25,800 investors in its Managed Investment Schemes (MIS) (source: Australian Agribusiness reports).
Mrs Govindasamy was one of these investors. She purchased 10 droves in the 2006 Beef Cattle MIS (cost: $50,000), 7 Grovelots in the 2006 Organic Olives MIS (cost: $56,000) and 33 Woodlots in the 2006 Plantations MIS (cost: $99,000).
Overview
The perception of Australia as a relatively “risky” place to sit on a board, arises in no small part from the insolvent trading prohibition in section 588G of the Corporations Act 2001 (Cth) and how it interacts with general directors’ duties.[1]
Receiverships usually arise from a secured creditor exercising their rights under a loan contract or mortgage following a default. But even where no default occurs, the Supreme Court of New South Wales has jurisdiction to appoint a receiver to preserve the property of an association pending the resolution of a dispute about the management of the association’s property.
Jurisdiction
In a recent case, Emmett AJA of the Supreme Court of New South Wales refused to make an order to terminate the winding up of an incorporated association. In this article, we re-examine the principles with which the Court will have regard when determining whether to exercise its discretion to terminate the winding up of a company or incorporated association.
Background
High Court orders the liquidation of CBL Insurance
In Short
The Situation: Section 553C of the Corporations Act 2001 (WA) ("Act")provides that if a creditor and a company in liquidation have mutual dealings, the creditor must offset any sum the creditor owes to the company in liquidation against debt owed by the company.
The Question: Does the existence of a third party security interest over circulating assets (floating charge) which are intended to be set off against other debts prevent the dealings from being "mutual"?
In this proceeding, the Full Court of the Federal Court considered three main issues:
- whether certain on-lending arrangements gave rise to legitimate tax deductions for interest;
- duties and liabilities of directors who were not directly involved in the impugned transactions; and
- costs payable by a representative where claims were brought against the estate of a deceased director and the representative of that estate, in his own right.
Facts
Last Thursday's decision in the WA Supreme Court to allow a sale to insiders of a company subject to a deed of company arrangement will make the restructuring process smoother for administrators, who can now negotiate with a wider pool of potential purchasers, as Chapter 2E of the Corporations Act 2001 (Cth), which deals with related party transactions, will not apply (Mighty River International v Bryan Hughes and Daniel Bredenkamp as Deed Administrators of Mesa Minerals Ltd (Subject to Deed of Company Arrangement) [No 2] [2018] WASC 368; Clayton Utz acted for the deed administrators of Mes
When faced with multiple class action threats, there is little downside in a company giving consideration to a creditors’ scheme of arrangement to achieve a quicker and cheaper resolution of the underlying claims.