Insolvency Law

  • In a Members’ Voluntary Winding up, a Shareholder is a Creditor

    Posted by Sandra McColl

    In Re BM2008 Pty Ltd (in liq) [2010] VSC 337 (11 August 2010), Davies J of the Supreme Court of Victoria was asked to adjudicate as to whether a shareholder in a members’ voluntary winding up of a company (i.e., where the company is solvent) who has no claim against the company apart from the right to a share in the distribution of the company’s surplus assets is a ‘creditor’ of the company.

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  • Bankruptcy Law Reform: Parliament Raises Threshold to $5,000

    Posted by Sandra McColl

    On 24 June 2010, Federal Parliament passed the Bankruptcy Amendment Bill 2009. Among the amendments included in the bill is an increase in the threshold of indebtedness entitling a creditor to issue a Bankruptcy Notice and a Creditor’s Petition, which are the two significant steps in the most commonly employed process by which a creditor may obtain a sequestration order against a debtor — or, in simple terms, make the debtor bankrupt.

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