A loan is a type of debt where one party gives money to another party on the basis that it will be repaid at some point in time. Anyone from a friend to a company can advance or receive a loan. For example, individuals may borrow money to purchase a car or home, or a...
It is common knowledge that directors owe duties to a company. Directors are, after all, responsible for its overall governance and direction. However, those duties are usually loosely acknowledged, and their scope is often underappreciated. In smaller businesses,...
Voidable transactions form a vital part of the insolvency regime and ensures that the assets of an insolvent company are made equally available to its creditors, particularly those that have been sought to be made unavailable in the period leading up to the...
The voidable transaction regime under Part 5.7B of the Corporations Act 2001 (Cth) (the Act) provides a framework for liquidators to pursue recovery action against parties who have received property or some form of benefit from an insolvent company. In turn, the...
There are changes happening! Significant changes are set to shake up the law of Unfair Contract Terms in small business standard form contracts. The changes come into effect on 9 November 2023 and will introduce serious penalties for businesses that use and rely on...
Company directors must be aware that you have less than two weeks left to apply for a Director Identification Number (DIN), or risk exposure to a substantial monetary penalty. The introduction of the DIN initiative seeks to promote good corporate governance and...
The Federal Government released exposure draft legislation aimed at increasing penalties for contraventions of Australia’s competition and consumer laws. In August 2022, the Federal Government released the Treasury Laws Amendment (Competition and Consumer Reforms No....
In the current environment with rising inflation and interest rates, there is more pressure on business owners and individuals to ensure financial obligations are met. This is particularly so when these obligations have been guaranteed by business owners, directors,...
How, and when, documents should properly served under the terms of a contract is a common, but important issue. While proper service may appear straightforward, getting it wrong can detrimentally affect the exercise of contractual rights under a particular contract....
Key takeaways The sole director of a company was found to have breached his duties as a director by causing the company, which was in difficult financial circumstances, to make unsecured loans to another company associated with the director. It is important for...
Traditionally it has been perceived that a lack of familiarity by foreign investors with the trust based structure of Australian managed investment schemes has been a significant barrier to attracting offshore investment in Australian funds. To combat this, from 1...
Key takeaways Crown directors avoid ASIC prosecution partly because they were entitled to rely on "what they were being told by senior management". Directors may properly discharge their duties and defend against claims of breach by reasonably relying on information...