The spate of insolvencies in the NSW construction sector shows no signs of easing. On 24 October 2013, the Building and Construction Industry Security of Payment Act Amendment Bill 2013 was introduced into Parliament. The Bill is part of the government’s broader reform package to address the level of insolvency being experienced in the NSW construction sector.

This week’s TGIF considers In the matter of Guided Knowledge Group Pty Ltd [2022] NSWSC 255 in which a liquidator sought approval for his remuneration under Schedule 2 of the Corporations Act 2001 (Cth).

Key Takeaways

Will a Court order security for costs against a liquidator with litigation funding? Not always, as a recent decision of the NSW Supreme Court made clear.

Background

The defendant was the director of a company (Commercial Indemnity Pty Ltd or ‘Commercial Indemnity’) which provided agency services for commercial and industrial rental and petroleum bonds.

This week’s TGIF considers the decision of Crowe-Maxwell v Frost [2016] NSWCA 46 in which the Court held that a liquidator did not discharge his onus of proving relevant transactions were unreasonable director-related transactions.

BACKGROUND

The recent Supreme Court of New South Wales decision of In the matter of Octaviar Administration Pty Limited (in liquidation) [2013] NSWSC 786 confirms that liquidators must notify all interested parties prior to seeking an extension for the period in which to bring preference actions.  For the first time, the Court has confirmed that the directors of the insolvent company are “interested persons” in cases where a liquidator intends to pursue the Australian Taxation Office (ATO) over potential preferential payments based solely on the potential for the ATO to

This week’s TGIF considers the recent decision of In the matter of PIC Lindfield 19 Pty Ltd (in liq)[2022] NSWSC 271, in which former directors of the company in liquidation failed to set aside summonses for public examination on the basis of alleged non-disclosure by the liquidators.

Key Takeaways

This week’s TGIF considers a recent insolvent trading claim involving novel questions in relation to privilege against self-incrimination and the apportionment of liability between successive directors.

Background

BACKGROUND

The statutory order of priority as it relates to a superannuation guarantee charge liability was considered in the New South Wales Supreme Court proceeding In the matter of Independent Contractor Services (Aust) Pty Limited ACN 119 186 971 (in liquidation) (No 2)[2016] NSWSC 106.

The recent New South Wales Supreme Court (Court) decision in Plaza West Pty Ltd (in liquidation) (subject to a deed of company arrangement) [2013] NSWSC 168 involved an application to terminate the winding up of a company subject to a deed of company arrangement (DOCA) and emphasised the importance of comprehensive reports from the company’s administrators and experts, in deciding that application.

Background

In the matter of Maiden Civil (P&E) Pty Ltd; Richard Albarran and Blair Alexander Pleash as receivers and managers of Maiden Civil (P&E) Pty Ltd & Ors v Queensland Excavation Services Pty Ltd & Ors [2013] NSWSC 852

Overview