A little learning is a dang’rous thing

So wrote the great English poet Alexander Pope, in 1711.  And more than 400 years later, in 2020, I shall prove him still to be correct – as I seek to address a topic of which I have only a passing knowledge! Credit markets In this series, we have looked so far at the health,… Read more

The Financial Impact of COVID: Expert Comments from Con Michalakis

Con Michalakis Chief Investment Officer, Statewide Super The COVID-19 pandemic is the deepest, non-credit based, global economic crisis to hit the economy since the oil crisis in the 70s.  We will no doubt debate the policy response for years to come, but we should note we are still living it and it’s too early to… Read more

COVID-19: Virtual general meetings temporarily permitted

In our recent article ‘COVID-19: Impacts for general meetings’, we covered the developments in late March 2020 regarding the holding of general meetings during the COVID-19 health emergency. Further key developments occurred on 5 May 2020, when the Treasurer issued the Corporations (Coronavirus Economic Response) Determination (No.1) 2020 (the ‘Determination’), temporarily allowing companies to hold… Read more

Merger Clearance in Uncertain Times

The ACCC are currently investigating the acquisition of a 19.9% stake in charter airline Alliance by Qantas in February 2019. Some fourteen months later, and in the context of a very different set of market circumstances, Qantas is having to respond to an enforcement investigation as a result of not seeking merger clearance prior to… Read more

Knows Knowns, Known Unknows, Unknown Unknows – Economic Impact of COVID

Every day a commentator conjures another letter to explain what Australia’s economic recovery will look like – a ‘U shape’, a ‘V shape’, an ‘L shaped’ recovery.   Today, I will offer my two penneth on this topic.  But before I do, let’s consider what Donald Rumsfeld once described as the ‘Known Knowns’, the ‘Known Unknowns’… Read more

Economic Impact of COVID – Chris Hall, CIO Ellerston Capital

The Global Economies Fiscal and Monetary response The global Government and Central Bank response to the COVID-19 economic shutdown has been unprecedented. As at the end of April, G20 countries have provided US$7.4 trillion in fiscal support, equating to 10.8% of GDP. This has been undertaken at the same time as continued monetary easing from… Read more

Non-executive directors and loan funded share plans

Offering shares to non-executive directors (‘NEDs’) is often an effective way for a company to align the NED’s interests with the interests of the company’s other shareholders. However, the way in which shares are offered to NEDs requires thought and attention to avoid any negative consequences. One such method that a NED could receive shares… Read more

Preference Shares – emergency funding mechanism in light of COVID-19?

In the wake of the economic impact of the COVID-19 pandemic, many companies will undoubtedly need to consider raising additional capital.  Gerry Cawson discusses the considerations for a proprietary limited company that is seeking to raise capital by the issue of preference shares. Freedom to raise capital The ability of a proprietary limited company to… Read more

Smaller Villages

It is seven weeks since a world of social distancing and omnipresent hand sanitiser was visited upon us.  Human beings, being adaptable creatures, have changed their behaviours and lifestyles to accommodate these new social strictures.  But which of them will last and what impact will they have on our lives as we cross the metaphoric… Read more