Court of Appeal to rule on Brereton remuneration decisions

Last Friday, Justice Brereton finally published his reasons in Sakr Nominees Pty Ltd [2016] NSWSC 709, the latest in a series of controversial decisions on insolvency practitioner remuneration. Continue reading

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Trust me…

Yesterday, the Supreme Court of New South Wales delivered a decision of relevance to the practice of every liquidator in Australia.

Justice Brereton, whose recent decisions on insolvency practitioner remuneration have drawn a fair bit of attention, delivered a complex decision in which he reached conclusions of significance to any liquidator winding up a corporate trustee, considering a claim for superannuation, or seeking court approval of fees. Continue reading

Joe & Joe – IPs’ legal costs under scrutiny

Yesterday the Supreme Court published its long-awaited decision in the Joe & Joe Developments litigation.

The litigation has been the subject of much gossip in the industry as it concerned allegations of rampant overcharging by insolvency practitioners and their lawyers. Commentators and industry observers have been poised, salivating, waiting for the scandal to break.

In the event, as is often the case with gossip, the facts were found not to justify the hype. Continue reading

Taxpayer guillotined – ATO still not happy

Yesterday the Federal Court made unprecedented use of an obscure provision of the Corporations Act to give a distressed company a final chance to sort itself out.

Instead of winding the company up immediately, the court made a conditional winding up order, which now remains suspended over the company like a guillotine, “encouraging” it to pay its outstanding tax and lodge its outstanding BAS by particular dates – failing which a liquidator will be appointed automatically.

Continue reading