Masi Zaki

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Standing to Challenge: Will the Australian Courts Continue to Assist Aggrieved Stakeholders as the Economic Uncertainty Remains?

Insolvency practitioners (IPs) often occupy quasi-judicial offices which, among other things, require them to, assess and adjudicate on competing claims, take coercive and enforcement actions and complete potentially contentious transactions. They must discharge their legal and equitable duties whilst maintaining objectivity and, whilst recognising and appropriately balancing the interests of a diverse range of stakeholders. … Continue Reading

A Hastie Decision? (Australia)

Economic, trading and supply chain uncertainties persist and are particularly pronounced in some sectors including infrastructure and construction where sub-contractors often feel significant pressure points. In our latest Australian insight, following the Federal Court rejecting the liquidators’ proprietary interest claims in the proceeds of performance bonds and upholding the head-contractor’s statutory set-off rights, we consider … Continue Reading

Economic Distress and the Risk of being Knowingly Concerned in the Contravention of Others (Australia)

As global economies continue to experience uncertainties, it is likely that financial service providers and their dealings with consumers and small businesses will come under the microscope. Masi Zaki and Kate Spratt consider those issues from the perspective of of Australian Financial Service Licence holders in our latest alert.… Continue Reading

What are the Proposed Changes to Corporate Control Transactions in Australia?

The Australian government is consulting on a proposal to expand the role the Takeovers Panel plays in control transactions, with an aim of reducing the time and costs of mergers and acquisitions. The proposal includes options for the Takeovers Panel to regulate control transactions by scheme of arrangement.   This article considers the proposed reforms and … Continue Reading

Will Contradictors Play an Important Role in Australian Litigation?

In the common law world, Australia is a global market leader in terms of intense litigation in class action and corporate collapse contexts. It is, therefore, not surprising that contradictors are becoming increasingly common in heavily contested litigation. In our latest alert in our litigation funding series, we consider whether contradictors will have an important … Continue Reading

Group Costs Orders in Australia

In our latest article as part of our litigation funding series, we consider the decision of the Victorian Supreme Court to award a group cost order (GCO). Although it is perhaps too early to be certain whether GCOs will work as the legislature intends (and they are currently only available in Victoria) there are a number … Continue Reading

Australian High Court Upholds Examination Rights of Eligible Applicants

The Australian High Court has handed down judgment in a long-running dispute concerning former ASX listed Arrium Limited.  The decision will be welcomed by individuals (particularly shareholders) and litigation funders, who may be seeking to conduct investigations into potential claims against a company in external administration, counterparties to that entity, its former or current advisors … Continue Reading

Australia’s Litigation Funding Reforms Remain Contentious

The regulation of litigation funding remains a hot topic in Australia.  In 2020 significant reform occurred with the Corporations Amendment (Litigation Funding) Regulations 2020 (Cth) (Regulation).  The Regulation required litigation funders to hold an Australian Financial Services Licence and be registered as a managed investment scheme for any class action.  It also subjected litigation funders … Continue Reading

Examination and Prosecution Risks Will Increase for Australian Directors and Third Parties Amid the Economic Uncertainty

For the past year, many Australian businesses, ranging from very significant publicly listed corporations, to much smaller family businesses, have benefited from public and private relief measures intended to soften the impact of COVID-19. Although those measures were introduced as a direct result of pandemic-related concerns, the economic reality in many sectors was already uncertain … Continue Reading

Court Appointed Insolvency Referees Gain Further Momentum in Australia

This year has introduced many a “new normal”.   In Australia there has been an increasing move by the Australian Federal Court to embrace references as a means of determining key contentious issues before trial – for example what is the date of insolvency.  This is particularly critical in the course of antecedent transaction proceedings, particularly … Continue Reading

The Future Remains Uncertain as Australia Introduces Its New Debtor-in-Possession Insolvency Laws

In late September 2020, the federal government announced that it would be introducing changes to Australia’s Corporations Act (Act) and the most significant amendments to the corporate insolvency regimes in decades. The main objective is to help the small business sector deal with and overcome the economic, financial and trading challenges posed by the ongoing … Continue Reading

Australia’s Directors Continue to Enjoy Two Safe Harbours as the COVID-19 Insolvency Laws Are Extended

The Australian federal government has announced that the temporary changes it enacted in March to the Corporations Act concerning insolvent trading laws and the creditor’s statutory demand regime have been extended to 31 December 2020. The changes were due to expire on 25 September. Please see out alert for further information.… Continue Reading

Preparing for the “New” Normal: Key Points for Australian Businesses to Consider

Our quick guide, “Preparing for the “New Normal” – Key Points for Australian Businesses to Consider” focuses on key issues for Australian businesses to consider in determining their viability as Australia continues to “unlock”.  This guide considers a range of issues, including: Cash flow and financing Supply and demand Employee considerations Operational costs Directors’ duties … Continue Reading

Australian administrators seeking to take advantage of landlord standstill periods amid COVID disruptions

Since late March 2020 there has been a steady stream of voluntary administrators seeking the assistance of the court to limit their personal liabilities under the Corporations Act (Cth) 2001 (Act) by pointing to the social and economic disruptions and restrictions caused by COVID-19. Administrators have always had the option of seeking the court’s assistance … Continue Reading

Australian Government takes swift legislative action to assist companies facing insolvency risks due to COVID-19

The Australian Government has taken swift action to enact new legislation which significantly changes the insolvency laws relevant to all business as a result of the ongoing COVID-19 related developments. Snapshot Temporary relief from insolvent trading and associated personal liabilities for directors seeking to navigate a path to financial viability and recovery for their companies, … Continue Reading
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