admin-balanceinsolvency

Charles Fan worked on a liquidation matter a few years ago that considered illegal phoenix activity:

• A business and its major assets were sold to a related entity prior to liquidation;
• ASIC expressed concerns and offered funding to the liquidator to investigate any illegal phoenix activity;
• The liquidator filed claims against the directors in Court, for various actions associated assets including the Company’s previous business transferred prior to liquidator’s appointment;
• Settlement of the claims provided for a return to creditors.

Below we look back a few years to a Liquidation run by Balance Insolvency founder Timothy Cook for a reminder that:

• Directors need to consider the reasonableness of transactions carefully.
• Directors need to be aware of and act in accordance with their director duties.
• Directors need to consider and separate their interests and those of the Corporate entity.
• Liquidators and the Court can hold directors accountable in various ways.

Below are some handy extracts from the CPA Australia newsletter highlighting some recent activity from the ATO which demonstrates the ATO has small business in focus.

Whether or not you have come across one, SBRs are very popular right now so below we have summarised a recent appointment so you can see how it might work for suitable clients.