Archives for October 2018

The ‘good faith’ defence to an unfair preference claim

This is the third article in our series on Unfair Preference payments.    The scenario that is common is that a business does the work or delivers the goods, invoices its customer and is eventually paid.   Three months later the business owner receives a letter from a liquidator demanding under threat of legal action that they be paid the money received on the basis the payment received was an unfair preference (Unfair Preference).  [Read more…]

Director Identification Numbers – more red tape?

The Exposure Draft of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2018 (Exposure Draft) was released on 1 October 2018.   If enacted, the provisions contained in the Exposure Draft would amend the Corporations Act 2001 (Cth) and implement a regime including an identification number for directors and a single business register.  The Exposure Draft stems from the announcement made by the Federal Government in the 2018-2019 budget to “target organised crime and tax evasion” by implementing new measures.  Those measures include a new regime to “modernise the business registers program” and merge the Australian Business Register (ABR) with the Australian Securities and Investments Commission (ASIC) Register to make one platform administered by the ABR within the Australian Taxation Office (ATO).[1]  Within this new register, company directors will be required to have an identification number (Director Identification Number or DIN). [Read more…]

What’s an unfair preference claim?

You have done the work, the client is happy, you’ve invoiced them and are awaiting payment.  You have had a long-standing relationship with the client.   They contact you and asks, despite your usual credit terms, if they can pay the invoice off over time.  It’s not the first time it has made this request, but they have always come good with payment.  You agree and the invoice is eventually paid.  Three months later you receive a letter from a liquidator demanding (under threat of legal action) that you pay to them the money you received because the payment was an unfair preference (Unfair Preference)! [Read more…]

Notice requirements under a commercial lease

Commercial leases often contain an option for a further term and normally have strict notice requirements about how to exercise the option.  What could go wrong if a lessee fails to comply with the option notice requirements? [Read more…]

De-encryption Bill currently before Joint Committee

The much awaited Telecommunications and other Legislation Amendment (Assistance And Access) De-encryption Bill 2018 (De-encryption Bill) has been referred to the Parliamentary Joint Committee on Intelligence and Security (Joint Committee).  The Joint Committee has allowed three (3) weeks for submissions.  It is a very short time-frame for submissions considering the controversial nature of the Bill.  Submissions close on 12 October 2018 and a hearing will then be held by the Joint Committee one (1) week later.  The De-encryption De-encryption Bill (if passed) amends the Telecommunications Act 1997(Cth) (and various other acts) and has the stated aim of “establishing frameworks for voluntary and mandatory industry assistance to law enforcement and intelligence agencies in relation to encryption technologies via the issuance of technical assistance requests, technical assistance notices and technical capability notices….” [Read more…]

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