Guidance has been provided to liquidators by the Federal Court of Australia in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) regarding the analysis of financial records required to determine the solvency of a company and what conduct of a director will constitute an unreasonable director related transaction.

In Re Clarinda (liq) [2023] VSC 109, parties sought the leave of the Court to use documents produced in an earlier proceeding to demonstrate the insolvency of the company. Justice Connock ultimately allowed the documents to be reproduced on the basis that the issues in dispute are the same, or substantially the same, and set out the special circumstances which substantiate this reproduction.

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.

The Government has released its response to the Franchising Independent Review agreeing to the majority of the recommendations. This article identifies some key changes to be made, the timing for these and explores what this may mean for franchises.

Drafting is an art form which requires precision, practice and preferably access to a large bank of precedents to assist in tailoring what is required to the circumstances and by the parties the subject of an agreement.

The ACCC has announced its enforcement and compliance priorities for 2024-2025. This article explores what this may mean for franchises.

This update replicates a legal update provided to the Franchise Council of Australia’s February breakfast at Kooyong Lawn Tennis Club.

There are a number of different ways that assets can be recovered from or for a bankrupt‘s estate or trust.

The concept of goodwill in a legal context is different to the concept of goodwill when it is used is an accounting context.  

On 22 September 2023 the Commonwealth government released the Personal Property Securities Amendment Bill 2023 and amending regulations for public consultation until 17 November 2023. The aim is intended to simplify the use of the law, in particular the registration process, and clarify its application, especially around enforcement priorities.

The ATO has a new collaborative and tailored approach to managing the collection and recovery of disputed debts.

This case concerned an uncontested application to extend the time for registration of a security interest on the Personal Properties Securities Register (PPSR), requiring consideration of what constituted a ‘security interest’ capable of registration on the PPSR.

This case provided a determination about which of the company creditors was entitled to receive, in priority of other creditors, tax refunds obtained by the liquidator in the course of winding up the company.

whether a lease of goods and bailment constituted a PPS lease within the meaning of the Personal Property Securities Act 2009 (Cth) (PPSA).

A recent Supreme Court decision has made it clear that there is nothing in the Retail Leases Act that restricts the issue of a certificate by the VSBC until after a mediation has been conducted and the absence of a mediation does not invalidate a certificate. The VSBC can form a view that a mediation is unlikely to resolve a dispute based on the refusal of one party to participate in a proposed mediation and issue a valid certificate so that an aggrieved party can commence proceedings in VCAT.

The Victorian Supreme Court has confirmed that payment of funds into Court as security for costs will not give rise to a security interest required to be registered on the PPSR, even if the payment was made pursuant to consent orders. This means that section 267 of the PPSA will not assist external administrators to recover funds paid into Court as security for costs under a Court order.

On 17 August 2023, the Court of Appeal in the Victoria Supreme Court handed down its decision in Krongold v Thurin [2023] VSCA 191. This decision is a further instalment in a long running domestic building dispute between homeowners, David and Lisa Thurin (Thurin) and their builder, Krongold Constructions (Aust) Pty Ltd (Krongold).

In Deputy Commissioner of Taxation v Pedley (No 2) (2018) FCA 2015 (Pedley), the Federal Court confirmed the wide discretion available to the Australian Taxation Office’s (ATO) to allocate payments made to it for tax debts especially where the taxpayer has not provided explicit direction as to what payments should be applied to which debts.

The High Court in Commissioner of Taxation v Tomaras & Ors (2018) HCA 62 (Tomaras) has confirmed the Federal Circuit Court had jurisdiction to make orders altering the property interests of parties to a marriage substituting one party for the other party as sole debtor to the Commissioner of Taxation (Commissioner) in respect of income tax liabilities owed by the first party.