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.
Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views
Is your settlement payment unsettling you?
Can you Mislead or Deceive Someone if You Have Honestly Relied on Your Lawyers Advice? A Case Study on ASIC v Retail Employees Superannuation Pty Ltd
The Federal Court of Australia’s judgment in ASIC v Retail Employees Superannuation Pty Ltd highlights that if a corporation honestly relies on advice from their lawyers that may provide reasonable grounds to defend the making of a representation that concerns the present state of affairs.
The Federal Court found that representations made by Retail Employees Superannuation Pty Ltd (REST) regarding their rules and practice were opinions expressed as to the law based on reasonable grounds due to reliance on advice received from their lawyers and other trusted sources. Therefore, the representations made could not amount to misleading or deceptive conduct.
Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd
The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd
‘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.
Sladen Snippet - Consultation process Franchising code of conduct review
Sladen Snippet - Private Wealth Advisor Program: advisors beware – you are on the ATO’s watch list
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.
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.
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.
Sladen Snippet – Liability of the trustee for a bankrupt estate to pay capital gains tax; Robson as trustee for the bankrupt estate of Lanning v Commissioner of Taxation [2024] FCA 720
The Federal Court of Australia has made a ruling that a trustee for a bankrupt estate is liable to pay capital gains tax derived from the sale of the bankrupts real property. The judgement of Robson as trustee for the bankrupt estate of Lanning v Commissioner of Taxation [2024] FCA 720 confirmed that the obligations contained in section 254 Income Tax Assessment Act 1997 (Cth) extend to the trustee of a bankrupt estate acting in a representative capacity.
Sladen Snippet – Proposed changes to Australian bankruptcy law
Franchising Update: Peak Physique found liable for representations which induced purchase of franchise
On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.
Sladen Snippet - PCG 2024/D2 - PSI and Part IVA
On 28 August 2024, the Australian Taxation Office (ATO) published Draft Practical Compliance Guideline PCG 2024/D2 (Draft PCG) on Personal services businesses and Part IVA of the Income Tax Assessment Act 1936.
Section 99B – TD 2024/D2 – you can’t always get what you need
Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns
Details Needed To Pursue Insolvent Trading Claims - Copeland as Liquidator of Skyworkers Pty Ltd (In Liq)) v Murace
On 18 January 2023 the Federal Court of Australia handed down its decision in Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14. The decision resulted in Liquidator’s insolvent trading claim against Mr Murace being struck out and costs awarded to the defendant, although the liquidator was then allowed to file a further statement of claim.