ASIC Banning

Hefty Ban for non-compliance on Tax

ASIC has disqualified RAS of Chirnside Park, Victoria, from managing corporations for the maximum period of five years due to serious misconduct. Between March 2019 and March 2022, RAS served as the director of two companies that went into liquidation: ASIC’s decision took into account RAS’s conduct in relation to the failure of Hedgehog Group Holdings Pty Ltd to determine whether the disqualification was justified. All three companies were involved

August 20, 2024

Small Business Restructuring

Project Delft – NDIS Provider Restructure

Summary Project Delft relates to the restructuring of a business in the disability services industry where GM Advisory provided the director with options and support to achieve a successful outcome. Background The company provides support workers and nursing care within metropolitan and regional Queensland. As a National Disability Insurance Scheme (NDIS) registered provider, the company not only provides nursing and support but also had commenced providing education and training for

July 19, 2024

ASIC Banning

ASIC Disqualifies Ex-Director from Financial and Insurance Services Industry for Five Years

ASIC has disqualified CO, a former director in the financial and insurance services industry from Dural, NSW, from managing corporations for five years. This decision follows CO’s involvement in the failure of three companies. Between May 1999 and November 2018, CO served as a director for two financial services companies: Clickthru Pty Ltd and O’Corp Media Pty Ltd. Additionally, from September 2019 to March 2021, he was an officer of

July 15, 2024

Class Actions

Expats Targetted by Schemes

Niall Coburn, a former corporate investigator and senior lawyer at ASIC and now principal at Coburn Corporate Intelligence in Brisbane, is spearheading a case involving more than 2,000 international claimants in the class action against Friends Provident International and others. Alleging that products sold to expats around the world were only suitable for professional, rather than retail investors, London law firm Signature Litigation LLP lead proceedings against Friends Provident International

July 15, 2024

Small Business Restructuring

Project Derby – Real Estate Agency Restructure

Background The Company provided real estate and rental property management services on the Gold Coast and despite making a small profit in the most recent year, it had been impacted by a number of factors which caused it to run up an accumulated tax debt. This legacy debt was impacting its capacity to grow and take on more staff which at the time of our engagement was 7 FTEs. The

July 10, 2024

Preferential Payments

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 preferences by throwing out the net and seeing what comes in. I call this the

July 9, 2024

Safe Harbour

Insolvent Trading

A company is solvent if, and only if, the company is able to pay all of its debts as and when they fall due and payable: s 95A of the Corporations Act. This is a question of fact to be determined, taking into account all the circumstances, including a consideration of the nature of a company’s assets and business and commercial reality. This test of solvency incorporates a ‘cash flow test’ as opposed

July 8, 2024

Safe Harbour

Project Ghent – Safe Harbour Case Study

Recently completed Safe Harbour appointment of a packaging company which concluded in the Company going into Voluntary Administration after a 12-month engagement. Here are the details. The Safe Harbour engagement was for 12 months, commencing in May 2023 and concluding when voluntary administrators were appointed in May 2024. Reasons for the Engagement The relevant entity was a public company with three directors on the board. For approximately 18 months prior

June 26, 2024

Director Duties

ASIC Cancels 4 More

ASIC is now reporting some director banning’s in batches. An example of 4 directors no longer able to act as director took place between 1 January to 31 March 2024. Claiming that some of these 4 were involved in running up numerous debts including the ATO, employees, other small businesses; that they also participated in illegal phoenix activity, and that they diverted company funds to related parties without legitimate commercial

May 10, 2024

GM Advisory Posts

Critical Industry Updates