Ombudsman Insolvency Inquiry

The Australian Small Business and Family Enterprise Ombudsman (“the Ombudsman’) has convened an inquiry into the insolvency system. I am hopeful the Inquiry will start the process of developing of a new regulatory framework that will help a small business survive insolvency.

Reforms to Address Corporate Misuse of the Fair Entitlements Guarantee Scheme

For the reasons advanced in this Submission, it is argued that, in certain circumstances, a pre-pack or a pre-positioned sale of a company’s business can assist mitigate the misuse of the Fair Entitlements Guarantee Scheme whilst, at the same time, can be undertaken in an environment which avoids the sharp corporate practices which have been identified as facilitating that misuse.

A True Win For All Players?

Josa Constructions Pty Limited (“Josa”) and Equipment Hire Pty Limited (“EH”) have been in the care of voluntary Administrators since 22 June this year. The Administrators quickly became aware that Josa would earn a substantial amount, from which Creditors stood to benefit, by finishing work it had started under a Contract with the local Council at Penrith.