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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

In an previous article discussing the ACCC’s enforcement priorities for 2024-25, we noted that the Australian Competition and Consumer Commission (ACCC) has continued to monitor strict compliance with small business codes of conduct, including the Franchising Code of Conduct (Franchising Code).

 

In particular, the ACCC had pursued UltraTune, for contempt of Court when Ultratune failed to comply with orders made by the court requiring Ultratune to take specific actions. On 28 January 2025, UltraTune’s appeal was dismissed by the Full Federal Court.

 

UltraTune’s story serves as an important reminder to ensure active monitoring of business’ compliance with all the obligations including those imposed on them by the law or court order and those that they might voluntarily agree to undertake.

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Admitting debts to qualify creditors for interest: requirements on liquidators under section 563B of the Corporations Act.

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Admitting debts to qualify creditors for interest: requirements on liquidators under section 563B of the Corporations Act.

In the decision of Park, Re Queensland Nickel Pty Ltd (in liq) (Statutory Interest)[1], Justice Downes held that liquidators must make a ‘conscious’ effort to determine who may be entitled to a company’s assets for debts to qualify for interest under section 563B of the Corporations Act 2001(Cth) (Act). [1] [2024] FCA 1300

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

If your business is restructuring, contractual rights triggered solely by the restructure or financial distress may be rendered unenforceable under section 454N of the Corporations Act 2001 (Cth). This statutory protection can help a business stabilise and continue trading through difficult times. This article reviews a recent case of Okami SA Newton Pty Ltd v Newton SC Pty Ltd which considered the operation of this section.

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

Active Super was found to have made false or misleading representations by using unequivocal language, and engaged in conduct liable to mislead the public in relation to investments it made.

The case provides further insights into the latest developments on ASIC’s ongoing greenwashing enforcement action.

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New ASIC Guidance on Insolvent Trading

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New ASIC Guidance on Insolvent Trading

On 6 December 2024, the Australian Securities & Investments Commission (ASIC) updated its Regulatory Guide: Duty to prevent insolvent trading: Guide for directors (RG 217).

The guide contains key principles intended to help directors comply with their duty to prevent insolvent trading and how to establish safe harbour protection through proactive monitoring and timely action.

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Franchising Update: A Year in Review

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Franchising Update: A Year in Review

This article will looks back on some of the key developments that occurred in the franchising sector in 2024, offering a reminder of changes and developments that occurred and foreshadowing what franchise businesses can expect in this coming year.

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

Last year, the Federal Court of Australia handed down its decision in Australian Securities Investment Commission v Vanguard [2024] FCA 308. This case serves as a reminder that business who are making sustainable investment claims must ensure that those claims are not misleading or deceptive in nature.

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From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

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From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

In ASIC’s first case against alleged greenwashing conduct, the court has ordered that Mercer Superannuation (Australia) Ltd pay a landmark $11.3 million penalty after it made misleading statements about sustainable and environmentally-friendly superannuation investment options marketed to its members.

Read on for key details of the case, and a breakdown of what your business can do to avoid greenwashing.

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

On 15 November 2024, the Treasury release a consultation paper on the design of proposed general and specific prohibitions on unfair trading practices. Options to amend the Australian Consumer Law will be considered and agreed in consultation with States and Territories.

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Senior Management liability for the conduct of a company business: Lessons from Productivity Partners Pty Ltd v ACCC

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Senior Management liability for the conduct of a company business: Lessons from Productivity Partners Pty Ltd v ACCC

The High Court deemed a tertiary college’s enrolment processes to be unconscionable for creating a risk of unsuitable student enrolment and found that  senior management may be held liable as accessories for the actions of the business if they were aware of the primary matters which made the conduct unreasonable. 

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

In November 2024, the Government introduced a consultation paper proposing the incorporation of a licensing regime for the franchising sector.

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Is your settlement payment unsettling you?

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Is your settlement payment unsettling you?

The income tax treatment of settlement payments received under an agreement depends on the circumstances surrounding the entering into of the agreement, not just the terms of the agreement.

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

The High Court of Australia’s judgment in Mallonland Pty Ltd & Anor v Advanta Seeds Pty Ltd [2024] HCA 25 emphasised the significance of incorporating clearly written disclaimers on your product’s packaging to limit your liability for pure economic loss claims in negligence.

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The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

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The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

A company director’s request to redeem money from a unit trust has been rejected by the Court. The New South Wales Supreme Court ruling emphasises the need for clear documentation of intended transactions within a company structure.

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‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

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‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

The specific wording of a contract is crucial to its interpretation and may be beneficial or a trap to parties. Many parties fail to understand the implications that the well-known phrase ‘subject to contract’ will have on their agreements. Masters v Cameron (1954) 91 CLR 353 is the leading Australian case which examines the consequences of certain wording on parties to a contract, and whether such wording leads to an enforceable and binding contract. 

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Sladen Snippet - Consultation process Franchising code of conduct review

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Sladen Snippet - Consultation process Franchising code of conduct review

The Australian government has proposed reforms to the Competition and Consumer Act in response to the Food and Grocery Code of Conduct and Franchising Code of Conduct reviews. The consultation process closes on 4 October 2024 and welcomes submissions from interested stakeholders.

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Winding up process and considerations for creditors following an unsatisfied statutory demand

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Winding up process and considerations for creditors following an unsatisfied statutory demand

The most common basis upon which creditors make an application to wind up a company and appoint liquidators is upon the non-compliance with a Creditor’s Statutory Demand. If the debtor company ignores the Creditor’s Statutory Demand and no payment or compromise is reached then the company is presumed insolvent, paving the way to wind up the company.

This article contains an explanation of the steps required when lodging an application for winding up in these circumstances, as well as some helpful tips to navigate the process effectively.

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When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

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When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

The Federal Court decision of Connelly v Papadopoulos re TSK Pty Ltd (in liq) highlights some of the implications for professional advisers. directors and officers involved in restructuring of companies and the risks encountered when engaging in restructuring that may be later viewed as asset stripping schemes under the creditor defeating dispositions provisions in the Corporations Act. 

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

If you have been declared bankrupt, or are looking to recover debt from an individual or company that has been declared bankrupt, you may be wondering what happens to debts following a declaration of bankruptcy.

This article sets out what debts are and are not recoverable from a bankrupt person, including specific debts which survive bankruptcy and remain recoverable by creditors even after the bankruptcy ends.