News
Changes to FEG, Avoiding Preferences, Restructuring and Appointee Independence
For many years the Federal Government’s Fair Entitlements Guarantee (FEG) Scheme and its predecessors have been a crucial lifeline providing funding for the payment of entitlements for employees terminated as a consequence of the insolvency of their employer. In the recent Federal Budget, the Government announced measures to cap redundancy payments under the FEG Scheme. Previously, redundancy pay was capped at four weeks for every full year of service. But from 1 January 2015, it is proposed that the maximum payment for redundancy pay under the FEG Scheme will be 16 weeks.
Read moreLessons from Recent Retail Insolvencies, Phoenixing and Employee Entitlements
In recent months our office has become involved in the collapse of several significant companies operating in the clothing and food retail industries and there appears little sign of relief in this struggling business sector. In all cases, the businesses were hopelessly insolvent by the time of our appointment and the losses suffered by suppliers to the companies has been significant.
Read moreBusiness Exit Strategies
When providing advice to directors of companies facing a cash crisis, one of the options considered is whether the business should be sold. Often the cause of the cash crisis is that the current owner(s) can’t continue to fund trading losses despite a potential turnaround looming, or don’t have the capacity to finance the working capital of a business that has grown. Therefore, business exit strategies should be considered.
Read moreNobody Plans on Failure And Nobody Plans Not To Fail...
Entrepreneurs start businesses every day with high hopes and grand visions and accountants are often criticised for being the wet rag for looking on the negative or conservative side.
Read moreNew ASIC Powers, Contractor Insolvency and Director Refused Access To Books And Records
Under the Corporations Act 2001 (Act), ASIC has the power to wind up a company on several grounds. These grounds include if ASIC believes that the company is not carrying on business, that the making of a winding-up order is in the public interest or if the company’s review fee has not been paid after 12 months from its due date (Section 489EA of the Act).
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