‘Just and Equitable’ Winding Up Of Solvent Companies
As of May 2018, there were approximately 2,598,541 registered companies in Australia. The majority of these businesses fall into the category of a small business. Accounting for 33% of GDP, small corporate entities are vital to the national economy. However, due to their small scale, it is often the case that these small entities only have one or two shareholders, which can create difficulties when conflict arises between shareholders who have an equal stake in a company.
When selling a business in Victoria for less than $450,000, a disclosure statement must be provided to the purchaser. In May 2018, the Victorian Parliament increased the threshold purchase price of a business from $350,000 to $450,000, below which a disclosure statement must be provided by the vendor. Commonly known as a “section 52 statement”, the disclosure statement contains a summary of the recent trading and financial performance of the business to be sold.
July 1 is the beginning of the new financial year; bringing with it new legislation. This article sets out key minimum wage and superannuation thresholds and other key figures relevant for workplace laws.
The recent decision of Justice Logan of the Federal Court in Australia and New Zealand Banking Group Limited v State of Queensland  FCA 464 acts as a reminder to directors and insolvency practitioners of the importance of default notices in retaining contractual rights and enforceable securities. It discusses the operation of section 133 of the Bankruptcy Act 1966 (Cth) (Act) and how it can protect security holders against bankruptcy disclaimers and the doctrine of escheat.