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

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.

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.

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.

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.

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.

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.

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.

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. 

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

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.

Green finance in Australia aims to facilitate the transition to a low-carbon economy while providing economic growth opportunities.

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.

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.

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. 

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.

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.

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. 

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.

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.