Company Seven – Construction Business

OVERVIEW ADMINISTRATION – POOR MANAGEMENT – LACK OF CONTROL – TAXATION – TRADE ON – SECURING ASSETS – INSUFFICIENT FUNDS – SALE OF BUSINESS Building Company was an incorporated entity that had been established to essentially provide glazing services including the installation of windows and doors to the Construction Industry. The operators had traditionally been … Continued

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Company Six – National Landscaping Business

OVERVIEW ADMINISTRATION – TRADE ON – CASH FLOW MANAGEMENT – RISK MANAGEMENT – CREDITOR RELATIONSHIPS – COMMERCIAL DECISIONS – TRADE OUT OPTION – LIQUIDATION – SALE OF BUSINESS – ASSET REALISATION MANAGEMENT – DISTRIBUTION Company Six operated a Landscaping and Ecological Restoration business for approximately 12 years prior to it running into financial difficulty ultimately … Continued

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Company Five – Registered Club

OVERVIEW PROVISIONAL LIQUIDATION – TRADE ON – TERMINATION OF BOARD – TRANSFER TO VOLUNTARY ADMINISTRATION – LEADERSHIP – FRAUD. One frequent but not so common reason for corporate failure is fraud. Fraud levels in the Australian business scene are unfortunately quite high in number but much of this is at levels that allow the business … Continued

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Company Four – Franchise Food Outlets

OVERVIEW ADMINISTRATION – FAMILY BREAKDOWN – FRANCHISING – POOR BUSINESS SELECTION – LACK OF CONTROL – INADEQUATE BUSINESS PREPARATION AND INVESTIGATION – POOR STRUCTURING Company Four had been formed by its owners to operate a number of franchised food outlets from two different franchises operated by the one Franchisor Group. Two of the stores were … Continued

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Company Two – Automotive Retailer

OVERVIEW   MOTOR TRADE – FLOOR PLAN FUNDING – ADMINISTRATION – FRAUD – TRADING ON – POSITIVE RESULT – KEY NEGOTIATION REQUIREMENTS Following advice that Company Two had received from their solicitors the Directors had been instructed to place the Company into Administration. Company Two had commenced operating some five years earlier as a Used … Continued

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The practical effects of PPSA

The Australian case law which may have assisted us to understand the following practical effects of the PPSA:- In the collapse of the Hastie Group Limited the Administrators applied to the Court to sell equipment even though they were registered with the PPS Register. In this case Administrators faced difficulties in identifying items of Plant … Continued

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Director Penalty Notice (“DPN”) – important update!

On 5 July 2012 Condon Associates issued a Media Alert in regard to changes to Taxation Legislation on 29 June 2012 which resulted in Directors becoming personally liable for their companies’ PAYG Withholding and Superannuation Guarantee Charges. Briefly, the Director Penalty Notice Regime now provided: Directors’ penalties to be  issued in respect of unpaid Superannuation … Continued

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Voluntary administrations and granting of extensions of the convening period for the Second Creditors Meeting- recent Court decisions

Up until recent times, it was commonly known that the Courts would readily grant an Administrator’s application for an extension to the convening period. Not anymore, as evidenced in the two following recent cases:- 1) Re: Harrisons Pharmacy Pty Limited (Administrators Appointed) (Receivers and Managers Appointed), and 2) Re: Autodom Ltd (Administrators Appointed) (Receivers and … Continued

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