Hicksons continues to grow with latest round of...

As of 1 July 2022, a new type of company exists in Australia, called a Corporate Collective Investment Vehicle (CCIV). After years of consultation and discussion, the next step is here in changing ways that Australians can invest their money and grow their personal investments.

The Supreme Court of Victoria recently handed down a decision in Re Intellicomms Pty Ltd (in liq)[2022] VSC 228 (Intellicomms), in what is a first for anti-phoenixing jurisprudence in Australia. The decision made findings in relation to the creditor defeating disposition provisions in the Corporations Act 2001 (Cth) (Act), which were introduced relatively recently by way of the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2019 (Cth) (Phoenixing Act). The decision in Intellicomms was the first of its kind to utilise the creditor defeating disposition amendments in the Act to hold that a transaction was a creditor defeating disposition, pursuant to section 588FDB of the Act and voidable under section 588FE(6B) of the Act. This is the first example of the new provisions combatting illegal phoenixing as was intended by the legislature.

Under section 596A of the Corporations Act 2001 (Cth), an eligible applicant can apply to the Court and the Court can, in turn, summon an officer of a company under external administration for examination about the company’s affairs.

Last Thursday (16 December 2021), in the decision of Morton as Liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufacturers Pty Limited [2021] FCAFC 228 (MJ Woodman), the Full Court of the Federal Court delivered a highly anticipated decision surrounding section 553C of the Corporations Act 2001 (Cth) (Act) and a liquidator’s unfair preference claim.

The recent lockdown in Brisbane is a timely reminder that a return to ‘business as usual’ is still uncertain.  This article explores the Australian Securities and Investments Commission (ASIC)’s ‘no action’ position, which is intended to facilitate businesses to hold their meetings effectively despite restrictions on gatherings and travel.

As the extension of the temporary relief and protection provided by the Corporations and Bankruptcy Legislation Amendment (Extending Temporary Relief for Financially Distressed Businesses and Individuals) Regulations 2020 during the outbreak of COVID-19 came to an end on 31 December 2020, as of 1 January 2021:

As the temporary relief and protection for businesses impacted by COVID-19 comes to an end on 31 December 2020, insolvency experts brace for a potential floodgate of insolvency administrations. Parliament clarifies the new provisions under the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) (Bill) which will commence on 1 January 2021.

The High Court in Carter Holt Harvey Woodproducts Australia Pty Ltd v The Commonwealth [2019] HCA 20 has clarified and confirmed that in the winding up of an insolvent corporate trustee, trust assets to which the company is entitled (via its right of indemnity) are property of the company, and the statutory priority regime under the Corporations Act 2001 (Cth) (Act) applies in terms of the distribution of the trust assets.