Month: May 2020

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

Social Impacts of COVID-19

Natasha Stott Despoja AO Chair, Our Watch Almost two months ago, my trip to the UN was cut short due to the New York lockdown. As I flew home to Adelaide, and into 14 days in quarantine, I had a scarf around my face and used hand wipes to open the overhead locker.When I landed,… Read more

Guidance on how FIRB’s COVID-19 Regulations will be applied

On 16 April 2020, the Australian government released the Foreign Acquisitions and Takeovers Amendment (Threshold Test) Regulations (‘Regulations’) together with Guidance Note 53 (‘GN53’). The Regulations codify the changes previously announced by the Australian Government regarding the lowering to $0 of the threshold for reporting foreign investment into Australia that give rise to significant actions… Read more

Regulatory certainty for Foreign Financial Service Providers

By Michael Garry and Nicholas Cardone With effect from 1 April 2020, a new ASIC regulatory regime applies to foreign financial services providers (‘FFSPs’) that provide financial services to wholesale clients in Australia (such as advisory and fundraising activities). Under this new regime, a number of FFSPs that were previously exempt to hold an Australian… Read more