Deemed Insolvency – failure to maintain proper books and records
When a company goes into liquidation and I become the Liquidator, I inherit what I inherit. A veritable smorgasbord or problems, claims, disputes and troubles. I also inherit the insolvent company’s books and records, and it is incumbent upon me to assess whether the records adhere to section 286 of the Corporations Act 2001 (CA), […]
Hands off! Protected money in bankruptcy
When advising your clients on what may be exposed in a bankruptcy scenario, you should be aware of the types of issues that are ordinarily out of reach of a Trustee in Bankruptcy. Set out below are the types of payments an individual can retain in bankruptcy and some they cannot. Superannuation Superannuation is a […]
Mistaken identity? Not anymore…
A report released recently by the Senate has outlined the potential roll out of the Director Identification Number (DIN) regime as part of broader efforts to combat illegal phoenix activity. As detailed in the report, the introduction of DINs was a primary recommendation of the ‘Insolvency in the Australian Construction Industry’ inquiry in 2015. Phoenix […]
The one-year bankruptcy
The Federal Parliament is considering the features of the Bankruptcy Amendment (Enterprise Incentives) Bill, which proposes, amongst other things, to reduce the period of bankruptcy from three years to one year. Understandably, there is still a negative stigma associated with the concept of bankruptcy, despite it being more common that you would think. However the […]
FEG: What is it, who is covered and how does it work?
Employees who are Australian citizens or permanent citizens can make a claim through FEG. Any Directors of the insolvent company (or their related parties), contractors and non-resident foreign workers will be required to lodge a formal proof of debt in the insolvent estate and join the list of priority creditors. Should there be enough funds […]
Five minutes with Kim Wallman
So Kim, tell us a bit about yourself… I was born in Perth and grew up in Floreat. I went to Hale School and graduated in 1973 and then studied at WAIT (now Curtin University). I worked at Price Waterhouse in their audit division straight out of uni, then Taylor McKinnon (tax and audit), Duesbury/Ernst […]
Connecting the dots – the power of hindsight
As Liquidators, when investigating the past affairs of an insolvent company, we have the power of 20/20 hindsight of decisions made in the heat of the moment, of courses of action that may not necessarily have been followed again if people had their time over. It’s a powerful and unique entitlement. That got me thinking… […]
Bankrupt individuals receiving inheritances
Most people know that upon an individual being made bankrupt, their ‘divisible property’ is realised for the benefit of the creditors of their estate. What some people do not know, however, is that an inheritance received during the term of the bankruptcy can be claimed by the bankrupt individual’s Trustee to go towards his or […]
How do ATO garnishees work?
There has been a bit of movement at the station recently in relation to the ATO’s use of garnishee notices, particularly after an ABC Four Corners program that aired in April 2018, in which former ATO staff talked about the inappropriate and unfair use of garnishee notices. The former employees of the ATO alleged that […]
PPSR turns seven – but are your clients still registered?
The 30th of January 2019 marks the seven year anniversary of the much loved Personal Property Securities Register (“PPSR”). Before you pop the bottle of champagne, let’s just pause to consider the significance and implications of reaching the seven year itch. The seven year security interest is the most commonly selected registration period (because it […]