In a trust, a trustee has strict obligations to beneficiaries. These are either set out in the trust deed, or apply via operation of law. Where a trustee does not act in accordance with those obligations there is a ‘breach of trust’. Here we take a deep dive into the concept of a breach of trust, and examine some recent case law.
What are the benefits of the Small Business Restructuring Process compared to Voluntary Administration?
Corporate insolvency in Australia underwent a seismic shift in 2021 with the introduction of the Small Business Restructuring Process (SBRP) under Part 5.3B of the Corporations Act. This new process aimed to provide a more cost-effective and simplified debt restructuring…
2021 introduced sweeping changes to Australia’s corporate insolvency laws with the introduction of the Small Business Restructuring Process (SBRP) under Part 5.3B of the Corporations Act. This innovative restructuring process aims to give struggling small businesses a lifeline by enabling them to restructure their debts and bounce back more resiliently whilst leaving directors in control of their own business. This blog post explores the key hurdles to qualification for restructuring under the SBRP.
Why is the Small Business Restructuring Process a debtor-in-possession model, and why does this matter?
The introduction of the Small Business Restructuring Process in the Corporations Act has marked a significant shift in Australia’s approach towards company restructuring. Essentially, it moves towards a debtor-in-possession model, a concept that might appear foreign within the traditional creditor-in-possession system of Australia. Understanding why this change has occurred and its implications is critical for businesses navigating restructuring scenarios.
Small business restructuring is a complex process that entails two levels of professional fees. However, compared to other forms of external administration, the pricing for restructuring is more straightforward and generally lower. In this blog post, we will explore the different types of fees involved in the Small Business Restructuring Process (SBRP) and shed light on the factors that determine their amounts. Additionally, we will discuss the role of third-party professionals and the potential need for their services to support the small business restructuring process.
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Accounting records play a vital role in any business, serving as the foundation for financial reporting, decision-making, and compliance. As a business prepares for a Small Business Restructuring Plan (SBRP), it is crucial to ensure that its accounting records are accurate, complete, and well-organized. In this blog post, we provide a comprehensive checklist to help an insolvent company to review and assess its accounting records before initiating an SBRP.
Sub-contracting is an essential component of the Australian economy. Here we suggest some ways for sub-contractors to overcome the challenges of their field and avoid financial Zombification
Technical experts with a flair for entrepreneurship are the key new business starters in Australia. Here we examine what success looks like for these types of business.
While big business get all the media attention, the Australian economy is driven by small businesses. Here we look at some of the challenges for small business, and suggest some ideas to help them in their business journey.
The Small Business Restructuring Process (SBRP) was introduced in Australia in 2021 as a streamlined process for insolvent small businesses. The objective of the process is to allow small businesses to put a restructuring plan proposal to creditors without losing control of their business.
The majority of Australian businesses are expertise-driven. We look at some of the difficulties that face expert entrepreneurs and what they can do to get on the right path for business success.