On 1 March 2017, a significant change was made to the Corporations Act 2001 (Act) involving a liquidator’s powers to sue various parties. This change was the introduction of a new provision into section 100-5 in Schedule 2 of the Act. It inconspicuously sits under “Other Matters” in the Schedule and permits a liquidator to assign actions to others, which historically only a liquidator could bring.
Recent amendments to the Corporations Act 2001 have resulted in extra protection for company directors for trading while insolvent. This ‘safe harbour’ for directors from personal liability ultimately enables company restructures outside of a formal insolvency process. This article will set out the situation before this amendment, the relevant changes, the conditions of this change and the benefits it presents.
This article deals with civil liability as opposed to the criminal liability of directors.
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.