COVID-19 | Emergency Amendments to Insolvency Laws

Government moves to amend insolvency laws The Commonwealth Government announced a range of temporary amendments to certain insolvency laws as part of its economic response to COVID-19. The amendments will temporarily affect insolvency laws, corporate governance, and directors’ duties. The purpose of the amendments is to support otherwise viable businesses which will temporarily suffer financial […]

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COVID-19 | Cash is King – 4 ways your business can best respond to the challenges of COVID-19

The coronavirus (COVID-19) outbreak is undoubtedly tragic for the thousands affected, with Governments around the world having to act swiftly and assertively to protect vulnerable people. But there is underlying harm being caused to the economy, too – and the real impact of this cost is only just emerging. We’ve all heard the saying before […]

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Insolvent Corporate Trustees – a way forward to realising trust assets

The recent decision of Cremin, in the matter of Brimson Pty Ltd (In Liquidation) [2019] FCA 1023 (Cremin) helpfully clarifies the approach practitioners ought to adopt when realising the assets of an insolvent corporate trustee. Here, the liquidator was appointed to three companies which each operated “Snooze” franchises in their capacity as trustee of a […]

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Liquidator’s application to obtain greater role in managed investment scheme winding up

In LM Investment Management Limited v Whyte [2019] QSC 233, the Supreme Court of Queensland considered an application by a Liquidator to: replace the court-appointed Receiver in the winding up of a managed investment scheme as well as for a complex remuneration and costs regime to be put in place; and to access the scheme property in […]

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Liquidator’s remuneration from trust assets – the next instalment

In LM Investment Management Limited & Anor Whyte [2019] QSC 245, the Supreme Court of Queensland considered an application by the Liquidator of LM Investment Management Limited (LM), for payment of some or all of his remuneration from trust property. The trust property comprised by a number of registered investment schemes, including the LM First Mortgage Income […]

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Send it to the right person: the importance of accurate notices terminating options

In JPA Finance Pty Ltd v Gordon Nominees Pty Ltd,[1] the Supreme Court of Victoria held that a notice purportedly terminating an option to purchase 20 units in a trust for $2.3M was invalid. This was because it was not addressed in accordance with the contract. Instead of being addressed to the company care of its lawyers, […]

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Involved or not involved? That is the question for partners.

It is well established that the privilege against self-incrimination and privilege from exposure to civil penalties can be claimed by natural persons and are not available to corporations. However, the position is not yet settled insofar as it relates to partnerships. More specifically, whether all partners can claim the privileges or whether it can only […]

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Federal Court finds ticket reseller engaged in misleading and deceptive conduct

In the recent case of ACCC v Viagogo AG, the Federal Court considered whether Viagogo engaged in misleading and deceptive conduct by acting in a way liable to mislead consumers when reselling event tickets in breach of the Australian Consumer Law. This decision is a reminder to businesses to accurately describe the nature of the products or services […]

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Employees’ priority in the insolvency of a trading trust: the Amerind case in the High Court

In the Amerind case, the High Court has unanimously held that the former staff of an insolvent trustee company have the same rights to priority payments as the employees of an insolvent non-trustee company. In doing so, the Court settled a long-standing debate about the nature of a trustee’s right to indemnify itself from trust property for trust […]

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The future of litigation in Queensland – eDiscovery and eTrials

Litigation can be costly. In particular, the discovery stage can form one of the most expensive phases of the litigation process. The Court and practitioners alike are increasingly turning to technological solutions to reduce the time and cost of the discovery process. Taking into account such factors, Gadens were recently involved in a proceeding in […]

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When will a court impose a trust relationship in commercial agreements such as franchises?

In Re Stay in Bed Milk & Bread Pty Ltd (In Liquidation) ACN 115 166 982 [2019] VSC 181, the Court considered whether monies paid into a marketing fund by franchisees gave rise to a trust relationship.   Background and the parties’ arguments Stay in Bed Milk & Bread Pty Ltd (the Company) was the franchisor of the […]

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eDiscovery and eTrials in the Supreme Court of Queensland

Litigation can be costly. In particular, the discovery stage can form one of the most expensive phases of the litigation process. The Court and practitioners alike are increasingly turning to technological solutions to reduce the time and cost of the discovery process. Taking into account such factors, Gadens were recently involved in a proceeding in […]

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