The Blog

New Anti-Phoenixing Laws

The term ‘phoenix activity’ is used to refer to both legitimate business rescue attempts and the use of insolvency processes to avoid the payment of creditors. In an attempt to combat damaging phoenix activity, which is estimated to cost the Australian economy up to $5.13 billion each year[1], in February the Treasury Laws Amendment (Combating… 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

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

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