{"id":535,"date":"2017-06-06T14:07:26","date_gmt":"2017-06-06T04:07:26","guid":{"rendered":"http:\/\/kazi-portolesi-lawyers.leapwp.com.au\/?p=535"},"modified":"2020-11-10T07:11:58","modified_gmt":"2020-11-10T07:11:58","slug":"defining-solvency","status":"publish","type":"post","link":"https:\/\/www.kpl.net.au\/defining-solvency\/","title":{"rendered":"Defining \u201cSolvency\u201d"},"content":{"rendered":"
The decision of Austin Australia Pty Ltd v De Martin Gasparini Pty Ltd [2007] NSWSC 1238 considered the definition of, and tests for determining, \u201csolvency\u201d under the Corporations Act 2001 (Cth).<\/p>\n
The case was part of a preference proceeding, that dealt with the winding up of a corporation, Austin Australia Pty Ltd (Austin). It was necessary for the court to answer as a separate question whether Austin was \u201cinsolvent\u201d under the statutory meaning during the period 30 June 2003 and 31 December 2003.<\/p>\n
In deciding the question of solvency, the court had regard to the following evidence:<\/p>\n
In determining the question of insolvency, Barrett J considered three matters:<\/p>\n
Barrett J found Austin\u2019s position was not merely a temporary situation. Profitability did not exist and the company could not meet its debts. Further, there were no external sources of funds for it to draw on. This resulted in the finding that there was an endemic shortage of working capital and inability to pay debts, and that the company was insolvent from 30 June 2003 to 31 December 2003.<\/p>\n","protected":false},"excerpt":{"rendered":"
The decision of Austin Australia Pty Ltd v De Martin Gasparini Pty Ltd [2007] NSWSC 1238 considered the definition of, and tests for determining, \u201csolvency\u201d under the Corporations Act 2001 (Cth). Fact The case was part of a preference proceeding, that dealt with the winding up of a corporation, Austin Australia Pty Ltd (Austin). It […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2],"tags":[],"acf":[],"yoast_head":"\n