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Falling from Heights – Courts consider imposing fines which might crush business viability

In recent years, District Court Judges have dramatically increased the penalties that businesses, their staff and owners (officers) face for Workplace Health and Safety (WHS) breaches. Firmly within their sights has been matters of workers falling from heights - and arguably rightfully so. Despite this, the recent involvement of Hicksons Lawyers in a fall from heights prosecution delivered a verdict that demonstrated that the Courts are not aimlessly imposing crushing fines with the sole purpose of destroying the culprit business. Rather, subject to the circumstances, the Courts are still willing to exercise their discretion to significantly reduce the penalty imposed.  
Blog

Set-off shield to unfair preference claims dropped

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.
  • 24 Dec 2021

Blog

New laws in flight to combat the rise of the phoenix

The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) is in full flight, which has put in place key changes aimed at enhancing disruption of phoenix activity and powers to prosecute directors and other professional advisors who engage in or facilitate phoenix activity.  
  • 29 Apr 2020

Blog

Thank you, High Court: some certainty created around Insolvency and Corporate Trustees

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.  
  • 16 Dec 2019

Blog

Receiver vs Liquidator: who is to distribute under s561 of the Corporations Act?

The decision in Kirman, In the matter of RWE Robinson & Sons Pty Ltd [2019] FCA 372 (Kirman) has clarified and confirmed that receivers, in a concurrent liquidation and receivership situation, have the ability to make payments under section 561 of the Corporations Act 2001 (Cth) (Act).
  • 13 May 2019

Blog

Proposed reform to protects honest directors attempting to hold their companies together in dire straits

On 28 March 2017, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, released draft legislation proposing changes to Australia’s insolvency laws. The release also included an explanatory memorandum and explanatory statement for public consultation in relation to the reforms which, if passed, are scheduled to become effective on 1 January 2018.

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