Corporate and Commercial
When managing an administration, liquidation, receivership or a trusteeship, Insolvency Practitioners face many issues and difficulties in respect of the impact of personal property security (PPS) interests on the winding up of a company.
A recent Federal Court case highlights some of the issues to be conscious of for those opposing applications to fix a later time for the registration of a PPS interest.
It is not uncommon for businesses to experience financial difficulties or periods of uncertainty. It is at these times that directors must diligently fulfil duties and obligations to the company, its shareholders and creditors.
The Australian Competition and Consumer Commission (ACCC) has announced it will be fighting tooth and nail in 2017 – demanding higher penalties, confronting the market leaders and defending small businesses against unfair standard form contracts. Investigations are underway and the ACCC will be taking enforcement action this year against numerous companies for unfair terms in business-to-business standard form contracts.
Transfer of business interests can be an area of drama and dispute. Forcing a transfer on parties unexpectedly or at a time not conducive to the exit will likely damage existing relationships and the business itself.
This article contains practical considerations for business owners faced with the pitfalls of an unplanned business interest transfer.