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In the wake of COVID-19, as part of its economic recovery plan to keep businesses afloat, the federal government is making changes to the insolvency landscape in 2021. These reforms draw on key features of insolvency legislation as found in the United States.  In short, they are an attempt to ensure distressed businesses have the...

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Whilst insolvent companies are the subject of the majority of winding ups, solvent companies can also be wound up on the initiation of its directors and shareholders (ie members). This may take place when members no longer wish to retain the current structure of the company or the company is no longer needed and not...

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The Federal Circuit Court has recently dismissed a bankrupt’s application for review of sequestration orders.  See the recent case of Commonwealth Bank of Australia Ltd v Jordanou [2018] FCCA 2972. The application for review was based on the High Court’s decision in Ramsay Health Care Australia Pty Ltd v Compton (2017) 261 CLR 132.  The bankrupt tried to explain...

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In a judgment handed down on 23 March 2017, Robson J of the Supreme Court of Victoria considered whether assets of a company in liquidation constituted ‘property of the company’, and subsequently, whether that property was subject to the statutory priority regime as set out in section 556 of the Corporations Act 2001 (Cth) (Corporations Act).   Background Amerind...

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Proposed amendments to PPS Leases On 1st March 2017, Personal Property Securities Amendment (PPS Leases) Bill 2017 (Bill) was read in Parliament. The following amendments have been proposed to section 13 of the Personal Properties Securities Act 2009 (Cth) (PPSA): (1) A PPS lease means a lease or bailment of goods: (a) for a term...

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