On 24 September 2020, the Supreme Court released its long-awaited decision in the case of Debut Homes Ltd (In Liquidation) v Cooper [2020] NZSC 100.
The main issue was whether a director was in breach of his directors’ duties under the Companies Act 1993 (Act) by continuing to trade against the background of an insolvent or nearly insolvent company.
Last month, the German Federal Ministry of Justice published draft legislation that could fundamentally change the restructuring landscape in Germany.
An essential part of the law is the introduction of a corporate stabilisation and restructuring regime, which establishes a comprehensive legal framework for non-consensual out-of-court restructurings in Germany on the basis of the EU's 2019 restructuring directive.
Notice to stakeholders: Withdrawal of the United Kingdom and EU rules in the field of civil justice and private international law.
On 27 August 2020, the European Commission published a ‘Notice to Stakeholders’ setting out how EU laws in the areas of civil justice and private international law will apply when the Brexit transition period ends on the 31 December 2020.
This Notice replaces an earlier notice published in January 2019 and a document with questions and answers published in April 2019.
The Corporate Insolvency and Governance Act (CIGA) came into force on 26 June 2020 and introduced a number of temporary and permanent reforms, with the aim of supporting businesses and the economy during the pandemic.
Included in this update: Government extends temporary COVID-19 measures in CIGA 2020 and more...
COVID-19
CIGA 2020 extensions in force
Our regular round-up of recent developments and topics for your radar, news on training and networking events for in-house counsel, and an update on our legal tech initiatives.
HIGHLIGHTS
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
On 24 September 2020 the Federal Government announced, as part of its JobMaker plan, a package of reforms directed at streamlining insolvency processes for small businesses.
The reforms draw on key features of the US Chapter 11 bankruptcy process and include:
No one expected these immortal words by Split Enz to be so relevant during the COVID-19 pandemic. However, that is exactly how some directors may be left feeling regarding the requirements to qualify for protection from trading while insolvent under the COVID-19 Safe Harbour provisions.
NAVIGATING COVID-19
When COVID-19 hit Australia, it created a crisis requiring urgent and extraordinary action by Federal and State Governments to protect the health of the Australian people and economy.
What have we been up to?
The days and nights may well be getting noticeably cooler, but as a team we remain very much at simmer point in terms of the demands of newlyacquired business support and insolvency work and staying on top of recent legislative changes.
Amongst this month's work highlights have been: