RSM provides professional corporate insolvency solutions and advice to help focus on recovery and reconstruction and add value to your work and your relationships.
Whether it's liquidation, receivership or voluntary administration, with RSM corporate insolvency solutions, you can be confident that you have all the professional support you need for your corporate insolvency matters.
A recent decision by a Victorian Court may settle the confusion associated with the appointment of a liquidator to a corporate trustee of a trading trust.
Robson J in Re: Amerind has chosen to follow aspects of Brereton J’s decision in the (NSW) case of Re: Independent Contractors which attracted a degree of criticism at the time.
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.
The Australian Securities and Investment Commission (ASIC) has demonstrated a continued commitment to investigating and prosecuting professional advisers who aid in breaches of director duties, or who are involved in phoenix activity.
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.
Chapter 11 for Australia?
Innovation Minister Christopher Pyne has declared changes to insolvency laws will be part of the innovation statement expected to be released by the government next month.
It is claimed business groups have lobbied the government to move Australian insolvency laws more toward the US model.
Businesses owing the ATO $100,000 have been wound up as a new crackdown gathers momentum. This indicates a clear change of focus and increased enforcement for the ATO and the message is clear - get a payment plan in place ASAP, or face a real risk of being wound up.