BANK CONTRACTS AND IMPLICATIONS
KNOW WHAT YOU ARE SIGNING THE CONTRACT The legal relationship between a banker and a customer is expressed in a contract which is in writing. Such contracts contain a promise by the bank to lend money, to establish a line of credit or to provide some other finance facility such as a bank guarantee. The […]
Starting a business
We all dream of owning our own business and have dreams of being successful. For some, the dreams come true with varying degrees of success. Others have tried and failed. But for many, owning a successful business remains a dream. Whatever the reasons are for starting up or buying a business, one must bear in […]
The Importance of financial records
When you can’t work out why your business is in trouble, you must always review the business financial records. You may find that the records have not been properly maintained and that may be the reason why you can’t determine the real profitability of the business, let alone matters of stock, debtors and creditors. Whilst […]
What Every Business Proprietor Should Know
How much revenue you need to generate to break even? Exactly how much you need to sell each week to cover your costs will help you make better business decisions. Your break-even point is important. It allows you to understand the impact of changing conditions on your business, and it allows you to make changes […]
Availability of Funds Outside of the Banking Sector
There are many reputable credit providers/company’s providing solutions to the working capital constraints that businesses face when they are trying to grow, re-structure, re-align or refinance. They can provide almost limitless funds running into the millions, and as well, many provide term loans secured by equipment and/or property. This might be the right structure, in […]
Warning Signs
For some of us in business, coming out of the Christmas season and shortly thereafter can be a tough time, with only one half of the month productive and even then, business is slowing for the first half of the month. The whole country goes on vacation for first half of January –and then on […]
On Bankruptcy/Winding Up
There are many reasons why a business can run into financial trouble. Debtors not meeting their payment obligations, problems with the tax office i.e. the business may have received a court summons or a Director’s Penalty Notice or even worse still received a statutory demand which if ignored can lead to the winding up of […]
Achieving Business Growth and Ensuring it Translates into Profit Growth
Growth is a common objective for most business owners, however it is not always easy to achieve, and even if achieved but not managed well, it can cause a business to fail. Growth usually requires a business to make some proactive changes and undertake specific activities designed to achieve the growth. It may also require […]
STATUTORY REMEDIES AVAILABLE TO BUSINESSES
STATUTORY REMEDIES AVAILABLE TO BUSINESSES IN THE EVENT OF FINANCIAL DIFFICULTIES ARISING STATUTORY REMEDIES AVAILABLE TO INDIVIDUALS OPERATING THE BUSINESS ARE BY VIRTUE OF THE PROVISIONS OF THE BANKRUPTCY ACT An individual who operates a business which finds itself in financial difficulty can make arrangements under Part 10 of the Bankruptcy Act. Put simply, the individual simply appoints a Bankruptcy […]
Warning Signs
SOME OF THE WARNING SIGNS Large debtors fail to pay Debt collection processes must be commenced and it may become appropriate to appoint an administrator where the company is not actually insolvent but may become insolvent and in a situation where degradation of the cash flows is likely to bring the company to insolvency. Running […]
Board Meetings
Some Important Responsibilities/Obligations of Directors: Directors are required to act honestly in the interest of the company The directors’ fiduciary duties (the first being the duty to act with good faith) and to avoid situations where, without consent of the company, the director’s personal interests must not conflict their duty to act with good faith. Any director having a contract with the company must consider if such a […]
General Meetings Of Members/Shareholders
General meetings include any meetings of members such as annual general meetings (‘AGMs’), General meetings usually cover matters outside of the scope of daily management, such as changes to the company name, status or capital structure, the constitution, approval of certain director benefits, removal and election of directors and auditors and director remuneration. What are […]
12 Point Checklist
Some Important Responsibilities/Obligations of Directors: Does any director have a contract with the company? And does this give rise to any conflicts of interest between any director and the company? Are all registers kept and maintained up to date? General offences Particulars of registered office to be kept current Register of Directors to be kept current […]
The Australian Taxation Office Directors Penalty Notices
The ATO has a number of ways to recover debts from companies and directors, one being via a director penalty notice whereby the Tax Office can issue these notices to directors to make them personally liable for two types of company tax debts, namely: Pay-As-You-Go Withholding Tax (PAYG) Superannuation Guarantee Charge (SGC) There are two types of […]
Financial Problems Faced by Business
Generally speaking, and in the first instance, only a drastic reduction in overheads or a substantial injection of capital can return a business to profitability assuming that this is achievable, otherwise some formal treatment will be required. If a return to profitability is possible, the directors of a company should immediately stop trading and appoint […]
What Is Voluntary Administration?
A company that should consider a Voluntary Administration is one that is insolvent and needs a deal with creditors in a formal way. A Voluntary Administrator is the person appointed by the directors and must be a Registered Liquidator who can assess all the options available, and recommend the best outcome for the company and […]
Business Risk Advisory Advice
“Be aware of unsolicited and unqualified so called Business Advisers” Providing good business advice is a highly specialised area that requires experience, skill and judgement. Too often, the wrong advice is provided by ‘a friend of a friend’ or a so called “mate” often seeking a personal benefit. They are unqualified people, posing […]
What is Voluntary Administration?
A company that should consider a Voluntary Administration is one that is insolvent and needs a deal with creditors in a formal way. A Voluntary Administrator is the person appointed by the directors and must be a Registered Liquidator who can assess all the options available, and recommend the best outcome for the company and […]
Understanding Bankruptcy
There be alternatives. Once you have been declared bankrupt you give up control of your finances and assets to a Trustee in exchange for protection from legal action being taken against. Depending on your financial situation, there may be alternatives to bankruptcy such as formal arrangements. Bankruptcy has consequences which you should know about, as […]
People who cannot buy a home are told to get out of Sydney and go to where housing prices are not in crisis
If Government were to embark on a capital expenditure program (Good Debt), developing a system for the movement of water from the North of Australia where there is in more abundant supply for a sizeable part of the year, down through and into Western and Central Queensland and Western and Central NSW, there would be […]
Business Risk Advisory Advice
“Be aware of unsolicited and unqualified so called Business Advisers” Providing good business advice is a highly specialised area that requires experience, skill and judgement. Too often, the wrong advice is provided by ‘a friend of a friend’ or a so called “mate” often seeking a personal benefit. They are unqualified people, posing as ’solution […]
Farm Debt Mediation
There are two types of mediation available under Farm Debt Mediation Act 1994 (NSW) (“the Act”). The first is creditor initiated mediation, which results from a creditor issuing a notice under the Act. The second type of mediation is farmer-initiated mediation. This is mediation where a farmer, rather than the creditor, takes the initiative to […]
The Client Can Leave It “Too” Late
It is not a good idea to hold off taking action to redress an insolvency. It is all very well that, if worst comes to worst, the business can place a company into administration or a sole trader or partnership under Part X of the Bankruptcy Act but delay brings with it a set of […]
Australian Privacy Law Changes In 2014
Australian Privacy Law Changes in 2014 On 12 March 2014 there will be some changes to the way that agencies and organisations can collect and deal with personal information. Thirteen ‘Australian Privacy Principles’ will replace the National Privacy Principles and Information Privacy Principles in the current legislation. The Australian Privacy Principles (APPs) will apply to […]
Personal Asset Risk Reduction Strategies
What can Business Owners and Company Directors Do to Protect their Personal Assets in the Event of Business Failure? There are now a number of acts that make directors personally liable for debts and obligations which were previously the responsibility of their company. Directors should be fully informed about their duties and obligations […]
Individual or Company Sued for Debts
Individual or Company Sued for Debts A company or an individual may be sued for non-payment of debts. This may involve expensive litigation. If the cost of litigation is considered unaffordable and may bring the business to its knees, there are solutions. In the case of an individual; he or she can arrange for the […]
Superstream Commences
SUPERSTREAM COMMENCES FROM 30 JUNE 2016 From 30 June 2016, all employers with employees less than 20 will be required to pay employees’ superannuation contributions using SuperStream. Until now, making super payments for employees has often meant lots of payments to different funds in different ways, taking several hours to complete. With SuperStream, super payments […]
Are You Thinking About Buying Assets?
Are you thinking about buying assets? Are you thinking about buying assets to help your small business grow? Now is the time to buy! If you use the simplified depreciation rules you can use the $20,000 write-off threshold. Simplified depreciation rules can get a bit tricky, so here’s how to get it right and make […]
New Bankruptcy Law
New Bankruptcy Law – 3 to 1 Year & “Safe Harbour” Benefits if a Business Reconstruction Expert is Appointed to a Company: In December 2015 the Productivity Commission released its final report outlining the following recommended reforms to the insolvency Law: 1. Changing the current three year default bankruptcy period to one year; 2. Introducing […]
Federal Budget 2016-2017 Supernnuation
There were a number of changes to Superannuation in the Budget Despite the headlines, these changes have no impact on the majority of taxpayers. Wealthy taxpayers with established super funds are slightly worse off if their fund exceeds $1.6m. To the extent their fund exceeds $1.6m, the income from the excess funds will be taxed […]
Beware of Running your Business from your Bank Statements
Many businesses fail because they do not prepare management accounts based on generally accepted accounting principles. Instead they run their business from bank statements. Relying on your bank statements has many drawbacks. The manager has no record of his trade creditors which can be fatal. A list of creditors should be maintained and booked in […]
Choosing an Appropriate Entity
ENTITIES AVAILABLE TO OPERATE A BUSINESS COMPANY A company is a separate legal entity whereby ownership and management of it are separated. The company is owned by the shareholders and management is vested in the board of directors. Shareholders will generally not be able to interfere with the decision making of the […]
Asset Protection
Asset protection is a set of legal techniques and a body of statutory and common law, dealing with protecting assets of individuals and business entities from civil money judgments. The goal of all asset protection planning is to insulate assets from claims of creditors without concealment or tax evasion. Asset protection consists of methods available to protect assets from liabilities arising elsewhere. Assets […]
Tax Debts
LETTERS FROM THE TAX OFFICE These letters should sensibly be treated as the commencement of a recovery of unpaid taxes. The client ought to be advised to either pay the outstanding tax, Enter into a binding agreement to pay the tax, Enter into a formal reconstruction arrangement To avoid dramatic action which may be taken […]
SMSF Death Benefits
SMSF Death Benefits Over the age of 60, while you remain alive you can withdraw as much of your super as you wish from your SMSF(subject to the ATO formula annual minimum pension payments) tax-free, and dispose of the proceeds tax-free to whomever you wish, including gifts to family members. However, if you die while you […]
Business in the 21st Century
Brown & Partners has developed a series of brief web articles designed to inform you about the various facets of running a successful business. They are not intended to replace personalized professional advice, which Brown & Partners is happy to provide to you. Please contact us to make an appointment should you wish to discuss […]
Pre-packs
Pre- packs are just another way to save an insolvent business. They involve: An insolvent company; A valuation of that company’s assets; An agreement being prepared and executed by the insolvent company and a new company, usually subject to a subsequent approval. The valued amount to be paid to the insolvent company by the new […]
Avoiding Litigation
You might be a corporation or an indebted individual in circumstances where either is involved in litigation. A solicitor can bring a stop to these Litigation costs which alone alone can send you broke. Appointments; Of a Trustee under Part 10 of the Bankruptcy Act (which is not Bankruptcy- and arrangement to avoid one) if […]
Australian Privacy Law Changes in 2014
Australian Privacy Law Changes in 2014 On 12 March 2014 there will be some changes to the way that agencies and organisations can collect and deal with personal information. Thirteen ‘Australian Privacy Principles’ will replace the National Privacy Principles and Information Privacy Principles in the current legislation. The Australian Privacy Principles (APPs) will apply to […]
Farm Debt Mediation
There are two types of mediation available under Farm Debt Mediation Act 1994 (NSW) (“the Act”). The first is creditor initiated mediation, which results from a creditor issuing a notice under the Act. The second type of mediation is farmer-initiated mediation. This is mediation where a farmer, rather than the creditor, takes the initiative to […]