As an insolvency practitioner, I occasionally see the impact that shadow and de facto directors can have on companies.
Section 461(k) of the Corporations Act 2001 (Cth) is a discretionary power of the court to order the winding
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A Personal Insolvency Agreement, or “PIA” is an arrangement with your creditors to settle your debts without becoming bankrupt
A PIA is based on comparing a bankruptcy scenario with an offer to creditors that aims to avoid bankruptcy. In other words, a PIA normally offers a return that is higher, or more timely, when compared with going bankrupt.
The process involves the appointment of a Controlling Trustee who takes control of, and investigates, your assets, other entitlements to property and income producing activities.
The Controlling Trustee presents their findings in a report to your creditors and compares your offer with what a bankruptcy would yield for creditors. Creditors then vote on which option they would prefer at a meeting.
PIA offers can be founded on a lump sum contribution from a third party, or other contributions over a period of time and also by related creditors waiving their entitlement to receive a return in the PIA process.
To speak with us further regarding whether a PIA may be appropriate in your situation, please contact us on 08 9215 7900 for a cost and obligation free consultation.