Essentially, a company charge is a security interest held by a lender over the personal property of a company. The charge is given by the company (the charger) to the lender (the chargee) to secure payment of a debt or obligation. A charge does not give the lender a legal interest in the property by… Read More
Uncertainty of contract – the ‘safe harbour’ and corporate insolvency amendments Over a nine month period to July 2018, amendments to the Corporations Act come into force which significantly limits the ability of corporate parties to rely on an ‘insolvency event’ to modify or terminate their contracts entered into after that date. Touted as a… Read More
ASIC’s review of unfair terms in small business loan contracts – impact on equipment financiers In March 2018 ASIC released one of its periodic ‘Reports’ on how it considers various laws and regulations should work. Report No. 595 comprises a review of the changes the 4 major banks have made to their small business loan… Read More
What happens if a company’s sole director/shareholder dies? SME business people such as finance brokers usually relish the freedom from legal formality afforded by the sole director/shareholder company model. This innovation was introduced by amendments to the former Corporations Law in the mid-1990s. Since that time a company can validly exist without having to have… Read More
Can employees sign a contract to bind their company? In daily business life it is often the case that a company employee who holds either an administrative, purchasing or financial position is entrusted with the responsibility of negotiating a contract. Then, when the negotiations are complete, that person is the individual required to sign the… Read More