Pre-Insolvency Advisor

A pre-insolvency advisor can include someone like Ginette Muller who is an appropriately qualified professional advisor with many years of experience as an ASIC registered insolvency practioner, chartered accountant and member of the Institute of Public Accountants. It can also, unfortunately refer to Untrustworthy Pre-Insovlency Advisors and Incompetent Trusted Advisors. It usually includes properly qualified […]

Unfair Preference Claims

Liquidators should not use scattergun approach Unfair preferences are important recoveries for liquidators because in many cases they are all that can be used to pay the liquidators’ costs. Creditors should only return the money if the liquidators’ claim is legitimate – don’t become a victim of the ‘scattergun’. Liquidators are not supposed to pursue […]

Insolvency Disrupted

My thoughts on some of the issues that business people in Australia face when dealing with insolvency issues today

Director Breaches Duty -ASIC Investigation

On 16 May 2022, CZ (‘the Director’) was convicted of dishonestly breaching his directors’ duties.  He had earlier pleaded guilty to breaching his directors’ duties by using his position as a director to gain an advantage for himself. The Director placed R.C.G. Pty Ltd (A.C.N. 008 781 539) into liquidation without disclosing to the liquidator […]

Non-lockdown DPN

Non-lockdown Director Penalty Notices (as opposed to a Lockdown DPN) are issued to a director of a company where: The company has lodged a business activity statement (BAS) or instalment activity statement (IAS) within three months of the due date; and SGC statements have been lodged within one month and 28 days after the end […]

Director Penalty Notices

As a company director, you are under an obligation to ensure the company can meet its financial obligations. For some years now, the ATO has had the power to make directors personally liable for key tax obligations by issuing Director Penalty Notices. If a director fails to meet a PAYG withholding, GST or SGC liability […]

DPNs are Coming!  ATO has made it clear.

There are two significant changes to Non-lockdown Director Penalty Notices (DPNs) that all company directors need to know: The option for the company to enter a payment arrangement is gone. This means that directors can no longer avoid personal liability for a penalty under a Non-lockdown DPN by entering into a payment arrangement for the […]

Lockdown DPN

Lockdown Director Penalty Notices are issued to director’s where their company’s have failed to lodge a BAS, IAS or SGC statement within the following timeframes: The company has lodged a business activity statement (BAS) or instalment activity statement (IAS) within three months of the due date; and SGC statements have been lodged within one month […]

Small Business Restructuring

Corporations Act 2001 (Cth) Section 453C ELIGIBILITY CRITERIA FOR RESTRUCTURING To be eligible for a small business restructuring, a company must satisfy the following criteria: total liabilities of the company must not exceed $1 million; no person who is or has been a director of the company (within the 12 months before the commencement of […]

Director breach gets community service

The director of a residential building contractor in NSW placed his company into Voluntary Administration because it was insolvent or likely to become insolvent.  Having ceded control to Administrators, the Director then issued invoices for work performed by the Company with instructions to pay those amounts to his personal bank account.  The amount involved was […]

3 failures cops 2.5 years

A Victorian director has been disqualified from managing corporations for a period of 2 years and 6 months – he was involved in 3 failed companies that went into liquidation between 2015 and 2019.  The offence – a breach of Corporations Act s260F – read GM Advisory’s explanation of that offence here. Two were involved […]