Articles
By John Hodgkinson and Angela Ipara From 18 February 2021, the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) took effect. It introduced new laws to combat the rise of illegal phoenixing activities in Australia. Our article titled “Phoenix Activity: When Legality Turns Murky” provided some helpful tips to assist businesses to identify and…
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WHAT IS ILLEGAL PHOENIX ACTIVITY? Kreisson is often asked by trade suppliers, professional consultants, and subcontractors in the building and construction industry to help recover unpaid debts from ‘phoenix’ operators. Illegal phoenix activity involves the creation of a new company to take over an existing business for often less than market value. After it has…
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It has been conventional wisdom that a head contractor’s payment claim in NSW is invalid unless it is accompanied by a supporting statement. Those statements list all subcontractors on the project and confirms that each has been paid. However, some of NSW’s most senior judges, in a case called TFM Epping Land Pty Ltd v…
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INTRODUCTION On 1 January 2021, the Corporations Amendment (Corporate Insolvency Reforms) Act 2020 took effect. The Reforms introduced a new, simpler and cheaper process for debt restructuring of small businesses. WHAT DOES IT MEAN FOR SMALL BUSINESSES? The new process allows eligible companies to continue trading in its ordinary way while a proposal for…
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THE STATUTE OF LIMITATIONS Parliament makes laws by passing statutes. The Courts apply those laws to resolve claims. A statute law establishes the deadlines within which claims can be pursued in the Courts. For example, litigation to enforce contracts must be started within 6 years after a default. The legislation is designed to protect defendants…
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