The extended COVID-19 relief measures permitting electronic signatures and virtual meetings are set to expire on 22 March 2021. The Federal Government has released draft legislation aiming to make these changes permanent.
The Court has considered whether a commercial tenant abandoned a lease by ceasing to trade due to COVID-19 and relocating its stock to a warehouse. It was decided the tenant had not abandoned the lease and it was ordered that the tenant was entitled to relief against the landlord’s termination of the lease, despite a history of late payment of rent.
A 139ZQ notice issued by the Official Receiver is a powerful tool for trustees in bankruptcy seeking to recover a benefit received by a third party from an alleged void transaction. These include transactions such as an unfair preference, an undervalued transaction, or a transaction to defeat creditors.
Section 561 of the Corporations Act 2001 (Cth) provides that accrued employee entitlements must be paid in priority to the holder of a circulating security interest in a winding up.
It is not uncommon for a repairer or the provider of storage facilities who is in possession of goods (a bailee) to be owed costs for work or storage services.
It is unresolved whether a creditor can rely upon a section 553C set-off under the Corporations Act 2001 (Cth) to reduce an unfair preference claim.
In a recent decision, a holding company of a group of companies was held to be the ‘true employer’, despite its subsidiary being documented as the ‘employer of record’.
A company in liquidation served a creditor’s statutory demand for debt where there was a genuine dispute about the existence of the alleged debt.
As directors consider how to meet their duties during the COVID-19 pandemic, the safe harbour provisions may provide some protection from insolvent trading liability.
The Federal Government has registered a legislative instrument permitting electronic signatures and virtual meetings to assist continuity of business operations despite the pandemic.
The Australian Government has announced temporary relief for businesses from statutory demands and liability for insolvent trading. Individuals will also be granted temporary relief in relation to bankruptcy notices.
On 11 March 2020, the High Court handed down its decision in ASIC v King [2020] HCA 4, a decision that considers the scope of definition of company ‘officer’ in the Corporations Act 2001 (Cth).