Regulation/Legislation

Trustee’s threat to debtor no abuse of process

Oracle Insolvency Services’s Nick Cooper. It seems there’s nothing like putting the frighteners on a recalcitrant debtor to ensure compliance with an existing repayment agreement and pleasingly, the Federal Circuit Court endorses such intimidation when the motives are pure and in line with the Act. “While, of course, from time to time, remarks have been made by Courts exercising jurisdiction under the Act about the…


Federal Court confirms trust assets can pay fees

Cor Cordis partner Sam Kaso. Cor Cordis Melbourne partner Bruno Secatore. Cor Cordis duo Sam Kaso and Bruno Secatore will be relieved following a decision of the Federal Court delivered this week in Kaso (administrator), in the matter of Sanitation Maintenance Services Pty Ltd (administrators appointed) [2023] FCA 418. The pair were appointed administrators of Sanitation Maintenance Services and three related companies in July 2022….


Commissioner fiddled as claims deadline burned

Steven Golledge SC. The Commissioner of Taxation’s (CoT) ears would’ve been aflame last week as Steven Golledge SC excoriated the highest tax officer in the land for repeatedly failing to preserve claims to millions lost to illegal phoenixing. As iNO reported in Banq Jurisdiction Case Could Limit Late Start Litigation, ex-clients of the controversial Banq Accountants & Advisers are seeking to overturn the basis on…


Banq jurisdiction case could limit late start litigation

Ex-liquidator David Iannuzzi. Commencing proceedings years after the deadline for such actions has expired is in for a test as the long running battle between the Commissioner of Taxation (CoT) and clients and interests associated with the notorious Banq Accountants & Advisors group flares again. The latest outbreak involves an appeal in the Federal Court by various beneficiaries of the Banq tax evasion scheme against…


Law says winding up invalid if plaintiff can pay

WA Insolvency Solutions’ Gary Anderson. WA Insolvency Solutions’ Jimmy Trpcevski. The law is a wonderful thing but on occasion its inevitable frailties can sometimes undermine faith in its efficient operation. In the case of HHA Architects Pty Ltd (HHA) a judge of the Supreme Court of West Australia in July last year found that the company should be wound up and liquidators appointed on the…


Stimpson stymied by SV Partners director’s partner

SV Partners’ David Stimpson. SV Partners Matthew Bookless. Liquidator David Stimpson is having to deal with some unwelcome complexities intruding into his management of the Youpla indigenous funeral fund debacle thanks to those pesky rules around independence and apprehensions of a lack thereof. Near as we can tell, the domino that precipitated the recently filed application by ASIC and the Department of Fair Trading (DFT)…


Deceased liquidator’s estate in sights of KPMG duo

The late Murray Godfrey. Ex-liquidator David Iannuzzi. It’s almost three years since Federal Court judge Angus Stewart made orders cancelling the liquidator’s registration of David Nicholas Iannuzzi. Since that time the liquidators charged with undertaking the work that Iannuzzi didn’t have been investigating, gathering evidence, settling claims where they could and commencing proceedings where they couldn’t. Those claims now on foot, which involve actions in…


Winding up proceeds despite foreign court rescue bid

Deloitte’s David Mansfield. An Australian court has wound up an Australian company with operating subsidiaries offshore despite an 11th hour, expensive and likely futile bid for an adjournment brought on the basis that restructuring proceedings had been commenced in Singapore and the foreign subsidiaries needed only a short time to develop a proposal. Vietnam Industrial Investments (VII) is described as a holding company for subsidiaries…


Corporate Insolvency Inquiry – what about bankruptcy?

With the government last month announcing that the Parliamentary Joint Committee on Corporations and Financial Services would begin an inquiry into corporate insolvency in Australia, iNO sought the views of stakeholders and interested experts on the Inquiry’s Terms of Reference. “At a higher level of policy, I think the inquiry is an opportunity to revisit some fundamental questions about if, why and how we expect…


Timing is everything when Corps Act and SOP collide

Condon Associate’s Schon Condon. Appointees dealing with creditors asserting a statutory debt based on the Building and Construction Industry Security of Payment Act 1999 (NSW) (the SOP Act) can breath easier following the delivery of reasons this week In the matter of Nicolas Criniti Pty Ltd (in Liquidation) [2022] NSWSC 1149. In this case a builder commenced the process for the hearing of an adjudication…