The new year has seen a rapid pace being set in terms of anticipated and actual legislative, regulatory and common law changes across Australia’s restructuring and insolvency regimes. In our latest insight we flag potential changes to not only the legislative regime but also the regulatory framework and consider the outlook for key stakeholders.… Continue Reading
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
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
The High Court in Australia has determined that territorial limitations do not curtail group member participation rights in class actions. Read what this decision means in our latest Insight.… Continue Reading
In a continuation of our Australian litigation funding series, Masi Zaki and Kate Spratt examine the recently announced reforms by the Australian government and the welcome relief for litigation funders, their investors and proponents in this insight.… Continue Reading
In this alert Masi Zaki and Kate Spratt considers the new powers that Australian market regulators will soon have to conduct virtual investigations and examinations, and how the proposed new laws mean that Regulator enquiries and examinations are likely to become more prevalent.… Continue Reading
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
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
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
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
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
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
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
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
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
Our guide sets out how different jurisdictions are changing their Insolvency Laws to help alleviate additional pressures placed on businesses as a consequence of cash flow pressures caused by COVID-19. This week’s updates include changes in the UK, Germany and Japan. Click here to see our guide.… Continue Reading
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
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
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
In the wake of the COVID-19 pandemic, we are often asked what clients should do if a business counterparty (such as a vendor, customer or other contract counterparty) is suffering distresses and may be contemplating, or be at risk of, falling into external administration. It is impossible to anticipate every potential scenario, but our note … Continue Reading
This quick guide summarises the duties that directors of Australian companies are subject to and how those duties change when the company is insolvent or at risk of being insolvent. It also gives an overview of the personal risk to directors when the company is in financial difficulty and suggests some practical tips to help … Continue Reading
Australian businesses are facing unprecedented challenges as the consequences of the coronavirus disease 2019 (COVID-19) pandemic unfold. At this difficult time, it is critical to take measures to ensure that your business has sufficient working capital for at least three to six months and the risk of being required to repay or restructure your existing … Continue Reading
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
