Directors

Law firm sued after asking CBA to appoint receivers

Cor Cordis partner Sam Kaso. Beware the company director who emerges restored to competency after a stint in a psychiatric institution. That’s the lesson one law firm is learning in the Supreme Court of Victoria. Of course, said law firm is doing all it can to persuade the court that the lesson is not its to learn, and that the director seeking to impose it…


Liquidators, receivers in tug of war over $20 million

DV Recovery Management’s Daniel O’Brien. Oracle Insolvency Services’ Nick Cooper. With the fate of $20 million in a solicitor’s trust account uncertain and three sets of insolvency practitioners on the clock, who could fault any for contemplating liens? Certainly not iNO, who was roused from inattention during last Monday’s Corporation Lists in the NSW Supreme Court by barrister Ingrid King telling Justice Ashley Black that…


If a DIRRI doesn’t succeed, declare and declare again

Grahame Ward. Image Mackay Goodwin. Domenic Calabretta. Image: Mackay Goodwin. Grahame Ward recently threw down the gauntlet to ASIC’s AI-backed monitoring regime when he lodged no less than three declarations of independence, relevant relationships and indemnities (DIRRIs) for the same company in less than three weeks. The defining characteristic of this effusion of filings was that each DIRRI identified a different referrer in respect of…


Forgery sees Administrator’s appointment ruled invalid

PKF partner Simon Thorn. A certain insolvency practitioner may attract some unwanted attention after ignoring forgery claims that a court has now upheld. In the NSW Supreme Court yesterday, Justice Kate Williams dismissed the practitioner’s application for orders validating his appointment as administrator of Premier Energy Resources Pty Ltd (PER), primarily on the basis that to do so her honour said would “give the imprimatur…


Phoenixer cops maximum wrist slap allowable

Philip Damien Whiteman. Photo courtesy ABC News. Opinion The authorities responsible for overseeing the conduct of corporations frequently remind the public of the cost of illegal phoenixing. Billions lost every year. Responsibly run businesses damaged through innocent association with unscrupulous recidivists. The undermining of public confidence in free and fair markets. “In 2016, evidence was obtained by the Australian Taxation Office “during an access without…


Straw director fooled them all, including himself

Grant Thornton’s John McInerney. Grant Thornton’s Phil Campbell-Wilson. It all started when lawyer Thomas Russell sent an email on July 2, 2019 to then Jirsch Sutherland partner Sule Arnautovic. Russell wanted to set up a time to discuss a potential VA appointment. He told Arnautovic he acted for Florian Heymans, the sole director of two companies operating under the Robust Construction Services Pty Ltd banner….


When the ATO’s sole creditor, SBR practitioners beware

SV Partners’ Stuart Otway. With the kid gloves well and truly off in respect of tax arrears, the number of directors seeking small business restructuring (SBR) protection has surged but it seems that when the Australian Tax Office (ATO) is the only creditor, satisfying the requirements doesn’t guarantee a plan will approved. In the Federal Court yesterday, an application for the hearing of a winding…


Queensland Revenue Office attacks Comlek DoCA

Wexted Advisors partner Andrew McCabe. Wexted Advisors founder and principal Joe Hayes. Wexted Advisors’ Andrew McCabe knew he was in a difficult position back in January when he came to chair the second meeting of creditors of the Comlek Group. As the largest single creditor with a claim in excess of $9 million the Queensland Revenue Office (QRO) had already made it clear to McCabe…


SPLs justified by conflict perception: judge

The latest judgment to surface from the stew of litigation between the Deputy Commissioner of Taxation (DCoT) and those behind gold refiner Pallion Group reveals that a lone liquidator has been adroitly walking the perception-of-conflict tightrope since 2017. “It was not necessary for the Court to form a view that the liquidator is, or will likely be, in a position of conflict. Rather, it was sufficient that an appearance of conflict exists sufficient…


Liquidator among eight summonsed for examination

O’Brien Palmer’s Liam Bailey. Hogan Sprowles Michael Hogan. A certain Sydney insolvency practitioner must be rueing the day he agreed to introduce Scott Keith McCorkell to a business valuer. Or is the day the liquidator’s referrer introduced him to the Mosman ad man the penultimate moment of regret? ” … while the BSA “appears to be “supported” by the Valuation …. there are a number…