TGIF is a weekly publication focusing on current issues in insolvency law and banking and finance litigation.

Clarification of liquidator’s power to sell assets held on trust by company disqualified from acting as trustee

17 October 2014

This decision clarifies the scope of a liquidator’s power to sell the property of a corporate trustee under s 477(2)(c) of the Corporations Act 2001 (Cth), and whether it is limited by the terms of the trust deed.

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Recent guidance from the Federal Court on proving uncommercial and insolvent transactions

10 October 2014

Federal Court provides insight on the principles for proving uncommercial and insolvent transactions and demonstrates the importance of precise and specific evidence.

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Does the PPSA apply? Receivers seek directions on goods held on bailment and consignment

3 October 2014

Does PPSA apply? The Court provides useful clarity on the PPSA concepts of “PPS Leases”, “bailment” and “commercial consignment” arrangements in the context of providing directions to Receivers.

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Court allows compulsory transfer of shares in Mirabela

26 September 2014

NSW Supreme Court grants leave to deed administrators to transfer the shares of a listed company (Mirabela Nickel Ltd) without the consent of its shareholders for the first time.

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The Supreme Court of NSW reminds us of the inflexibility of the conflict rule and the risks associated with the involvement of directors in transactions in circumstances where they are in a position of conflict

19 September 2014

This week’s TGIF considers a recent decision of the Supreme Court of NSW which reversed a transaction on the basis that the directors involved in the approval of the agreements were acting in breach of their fiduciary and statutory duties.

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Presentation of bankruptcy petition means Farm Debt Mediation Act will not prevent creditors from pursuing rights which may be related to a farm mortgage

12 September 2014

Federal Court confirms that Farm Debt Mediation Act (1994) (NSW) does not operate to prevent an individual from pursuing rights under the Bankruptcy Act 1966, which may be related to a farm mortgage, where bankruptcy petition has been presented.

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Liquidators not required to prove debts prior to commencing compensation proceedings for insolvent trading

5 September 2014

NSW Supreme Court confirms that there is no obligation on liquidators to adjudicate on proof of debts prior to commencing compensation proceedings for insolvent trading.

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Court of Appeal sets aside a statutory demand in the absence of a creditor confirming there is no genuine dispute about the debt

29 August 2014

NSW Court of Appeal confirms that a statutory demand can be set aside if the accompanying affidavit does not contain a statement to the effect that there is no genuine dispute about the existence or amount of the debt.

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PPS Registrar right to restore registrations removed because of parties’ own errors

22 August 2014

To the relief of anyone making a mistake in lodging a PPSR amendment application, the Court has recently confirmed the PPS Registrar can restore a registration that has been removed because of mistakes in a lodging parties’ amendment application.

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Setting aside a DOCA: Phoenix activity

15 August 2014

The recent decision of Canadian Solar (Australia) Pty Ltd is a useful reminder that a deed of company arrangement can be terminated by order of the Court, particularly where it (or a previous transaction) involves suspected “phoenix activity”.

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