One of the first sectors to bear the brunt of an economic downturn is the not-for-profit sector which is resulting in many considering an amalgamation or merger. Reliance on community services increases, yet funding and donations can be hard to come by and higher poverty rates affect customers’ ability to pay for services.
The reckoning - A Black Swan event in the form of a pandemic will test the capacity of personal and corporate insolvency regimes to deal with the impact of the pandemic on the financial position of individuals, corporations and incorporated associations.
Valuations for Family Law property settlements. Valuations are prepared as at a specific date based on circumstances and financial information known at that point, so it’s possible that valuations prepared a month ago or more may no longer be relevant - particularly for sectors which have been impacted more severely than others b
When you have a great business idea or want to expand an existing business, a loan can make all the difference in realising your dream.
You may choose to seek credit from a bank over an investor or another private lender because they:
Insolvency inquiry focused on small business
Despite the growing chorus of those calling for a root and branch review of insolvency law and practice the Government is funding a narrowly focused inquiry by the Australian Small Business and Family Enterprise Ombudsman (“ASBFEO”), Kate Carnell.
Most directors should be aware that they may be made personally liable for any unpaid debt their company incurs while it is insolvent.
In February’s newsletter, we gave an introduction to insolvency as well as some tips on how to avoid it.
To remain viable, any company needs to ensure that it is able to meet its debts when they are due, and to allow enough working capital for future financial obligations.
Once a company can not pay its debts as and when they fall due, it is said to be insolvent.
In a sign of the challenging economic circumstances that face certain industries and geographic areas throughout Australia the number of personal insolvencies in Australia has risen by 4.4% in 2015 / 16 as compared to 2014 / 15.
This is the first increase in formal personal insolvencies since the Global Financial Crisis.
A step too far?
The government’s proposal to reduce the term of bankruptcy from three years to one year has been the subject of recent debate. This proposal forms part of the government’s National Innovation & Science Agenda.
A recent decision in the Federal Court has confirmed that when a secured creditor has paid outstanding employee entitlements from the realisation of circulating assets, they have the right to subrogate into the position of employees and receive any dividends paid.