The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19. 

This week's TGIF considers the recent Federal Court case of Krejci, in the matter of Union Standard International Group Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1111, where the Federal Court ordered the director of a company to disclose passwords to the company’s server

Background:

In its recent judgment involving the PAS Group of companies[1], the Federal Court held that rent payable by the PAS Group during an extension of the period in which an administrator had been excused from personal liability (Standstill Period) is an expense properly incurred by a ‘relevant authority in carrying on the company’s business’ and is therefore a priority debt under s 556(1)(a) of the Corporations

Although Japan has so far been successful in keeping COVID-19 cases relatively low, the economy has been heavily hit by the COVID-19 pandemic and the government’s request for self-restraint. The number of bankruptcy cases in Japan has been increasing due to such economic impact and unfortunately, the number is expected to continue to grow in various industries. This Newsletter provides an outline of general bankruptcy proceedings in Japan and the impact of COVID-19 on bankruptcy practice.

Overview of Bankruptcy Proceedings in Japan

On 1 August 2020, the Companies (Miscellaneous Provisions) (COVID-19) Act 2020 (Act) was signed into law. This legislation, due to commence soon, will address certain specific company law issues arising because of the ongoing and unprecedented Coronavirus (COVID-19) crisis.

General Meetings

What is it and what has changed?

Wrongful trading is a term that has received quite a bit of press over the last few months, mainly through the headlines generated by the UK Government’s unprecedented amendment to the wrongful trading provisions contained within our insolvency legislation.

But what exactly is wrongful trading and what has changed?

We live in uncertain and financially very troubling times. The coronavirus pandemic and the unprecedented measures put in place to tackle it have caused severe disruption to businesses. Big names such as Harveys, TM Lewin, Intu and the owners of Café Rouge and Bella Italia all went into administration at the beginning of the month. They will not be the last.

A recent case in the NSW Court of Appeal clarifies the purpose, and limits, of a public examination summons

Nearly two years after it was first passed in Parliament on 1 October 2018, the Insolvency, Restructuring and Dissolution Act (“IRDA”) has now come into operation on 30 July 2020. The IRDA not only unifies Singapore’s legislation in relation to personal and corporate insolvency and debt restructuring, but also introduces significant changes to the present regime.

In this update, we will highlight nine key changes of the new provisions of the IRDA.

1. Restriction of Ipso Facto Clauses in Insolvency/Restructuring Proceedings