News

A Warning to Company Directors: Discharge from Personal Bankruptcy will not Necessarily Absolve Liabilities for Insolvent Trading

In the recent case of Taylor (liquidator) v Trustee, bankrupt estate of Heading, in the matter of Heading [2020] FCA 1450, the Federal Court considered the circumstances in which leave will be granted for an insolvent trading action against a company director who has previously been released from debts provable in bankruptcy.

ASIC Proceedings Against Insolvency Practitioner for Illegal Phoenix Activity

In a recent decision of the Federal Court, ASIC v Bettles [2020] FCA 1568, the Australian Securities and Investments Commission hit a road bump in its claim that Worrells partner Jason Bettles (Mr Bettles) aided and abetted illegal phoenix activity in 2016. ASIC’s pleadings being struck out as ‘incoherent’ is a victory for Mr Bettles, but the proceedings are far from over.

Morrison Government Announces Insolvency Law Reform Measures as the Winding Back of Temporary COVID-19 Relief Looms

By Alicia Hill, Principal and Nicholas Mason, Law Clerk On 24 September 2020 the Morrison Government announced significant reforms to Australia’s insolvency framework. The reforms are targeted at the small business sector and provide for a new debt restructuring process for businesses with liabilities of less than $1 million. The changes are expected to commence…

Directors’ Obligations to Furnish Information to Administrators

On 30 July 2020, the Federal Court of Australia (‘Federal Court’) issued orders In the matter of Union Standard International Group Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1111, restraining the director of a company in voluntary administration from handling company information that was requested by the Administrators. This case serves as a reminder to companies in administration to ensure full compliance with reasonable information requests from administrators while also demonstrating the complexities in document management and the risks improper data handling can have on the work of administrators.