When companies face imminent financial collapse, directors, for all sorts of reasons and with a variety of motivations, can undertake transactions, but if these are considered “unreasonable” under the Corporations Act 2001, a liquidator can negate them. Read More
Distribution of assets and other recovery proceeds in a company’s liquidation is frequently confusing to stakeholders. It’s apparent to Macks Advisory that many are unaware that a liquidator’s source of recoveries will affect distribution both to unsecured creditors and a bank holding a general security interest (GSI) in a company’s property. Read More
Predictably some small business owners are saying the Federal Government’s draft legislation to stop phoenixing won’t work – including a requirement for company directors to have identification numbers (DINs). However, while a minority claim “this is a proliferation of red tape”, most believe the proposed legislative reform is clearly in their best interests. Read More
A $2bn lending fund established by the Federal Government is the latest in a series created to address perceived market failures and to stimulate economic growth. Following widespread criticism of the cost of these failures to taxpayers, strict criteria will be applied to lenders wanting to borrow from this new fund to finance SMEs. Read More
Readers may be aware, but the reality is now becoming the fact. From April 1 2019 the Treasury Laws Amendment (2018 Measures No.4) Bill 2018 now denies directors a previous three-month period of grace – a so-called “safe harbour” under the Director Penalty Notice (DPN) regime – which allowed them to avoid personal liability for superannuation Guarantee Charge (SGC) debt. Read More
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