• As soon as you can, get in touch with Goldman Law for advice on the nature and implications of those documents, as well as the best course of action. It’s crucial to act quickly because, depending on the nature of the matter, the law may place limitations on your response time and, in the event that you are absent, a judgment may be rendered against you.

I was subject to a default judgment because I didn’t respond to the claim. Can this be undone in any way?

• Depending on the situation, it may be possible to have the default judgment overturned so that you can make a claim defence. There is a chance that the other party may take legal action to enforce the judgment against you, so you should get in touch with an attorney as soon as possible.

• Numerous factors, including the terms of the agreement, the calibre of evidence, any defences the debtor may be able to offer, and a ton more, will determine whether you can successfully sue someone.
• To get advice on your chances of success, get in touch with a lawyer who has all the necessary paperwork. When deciding whether to proceed, you should consider the costs and risks involved, as well as the potential outcomes, benefits, or drawbacks.
• Goldman Law can also give you advice on these factors.
• Even if you are successful, payment is not automatic!
• People may continue to avoid paying you, so you may need to enforce that judgment through further court processes, or the person may simply not have any money to give you. Goldman Law can advise you on enforcement processes.
• Goldman Law can also assist with your business structuring and can draft terms and conditions and other engagement documentation for your business to reduce the risks involved with having debtors. Clear terms and conditions can provide you with more certainty and depending on your circumstances, you may have potential options for reducing risk such as requiring guarantees or security.

• Every year, the ATO shuts down a lot of businesses. This debt needs to be treated seriously. Time is of the essence because there is no guarantee that you will be able to sign up for a payment plan or otherwise resolve it directly with the ATO. Additionally, interest charges and penalties add up quickly.
• Because the ATO may issue a creditor’s statutory demand in addition to the foregoing, you should get in touch with your attorney for advice and make sure they speak with the accountant for the business as soon as possible. A statutory demand has strict time restrictions and may allow the ATO to wind up your company if it cannot be complied with or set aside in court.
• You may be at risk of personal liability through director penalty notices issued by the ATO which have time restrictions. You may potentially be liable for various things you did or did not do before your company was placed into liquidation if the ATO is successful in winding it up and a liquidator is appointed.

• In this situation, you’ll need to take a lot of things into account. There will be procedures for handling this if your shareholders’ agreement is properly drafted.
• There will probably be more complications if you don’t have such an agreement in place or have one but it was poorly written. The likelihood of a full-fledged dispute arising is quite significant because emotions can run high in these circumstances, especially since there are friendships and businesses involved as well.
• These conflicts are frequently messy and expensive, especially if you start acting without seeking the right guidance and before your temper has already flared. As soon as you can, get in touch with a lawyer for advice and send them any necessary paperwork, including copies of any shareholder agreements.

Avoiding trading in a company while it is insolvent is one of the many obligations that company directors have.

• If you are worried that your business may be insolvent, you should get in touch with Goldman Law right away to get advice on how to lower your personal risks and improve your chances that it can be saved through some sort of administration or scheme.
• You will receive advice from us regarding your own risks and personal liabilities. Depending on the circumstances of the business, we may also advise you to consult an insolvency practitioner (an accountant who specializes in liquidations and other types of administrations) about the best course of action.

Voidable transactions ‘ and ‘ breaches of director’s duties’. I don’t really understand what this is about. Do I need to pay?

• There are many types of claims that liquidators may be able to make against directors, former directors and other officers of a company in liquidation. All these claims have different elements which the liquidator must prove in order to be successful, and there may be defences available to you.
• One set of facts or a certain action or omission by you could potentially give rise to different types of claims against you. You should contact us for advice as to your prospects of successfully defending such claims.
• As liquidators are tasked with getting in funds for creditors and are generally commercially minded, Goldman Law may be able to negotiate an outcome with the liquidator even if the liquidator has a reasonable claim against you.
• Directors breach of their duties: Allco Funds Management Limited (Receivers and Managers Appointed) (In Liquidation) –v – Trust Company (RE Services) Limited (in its capacity as responsible entity and trustee of the Australian Wholesale Property Fund) [2014] NSWSC 1251.
• In this case, the Supreme Court of New South Wales considered whether a director breached their duty to act in the best interests of the company under their care and consequently, whether a conflict of interest occurred.
• Justice Hammerschlag of the Supreme Court of New South Wales ordered that a Receiver was entitled to rescind (i.e. cancel) the Loan Agreement, Deed of Amendment and the redemption of the $109,687,077 funding units.
• In arriving at this Decision, we refer to the following comments by Justice Hammerschlag:
• In reference to the Director’s fiduciary duty to act in the best interests of the company under their care:
• “The rule is so strictly adhered to that no question is allowed to be raised as to the fairness or unfairness of a contract entered into”; and
• “Unless the articles of association of the company otherwise provide, a contract made in breach of this fiduciary duty, will be voidable at the option of the company unless the director makes a full disclosure of the nature of his interest in the contract of the members of the company, in general meeting, who must approve the contract by ordinary resolution. A provision in the articles may validate a contract which would otherwise be voidable under the general law.”
• The practical effect of this Decision meant that the AFML’s loan (the conditions for repayment of which were not likely to be satisfied) was set aside, and AFML’s significant beneficial equity interest in the fund was restored.

• You should contact Goldman Law as solicitor’s for advice as such disputes can have devastating effects on your business. Your solicitor can assist you in understanding your business’s position, rights and liabilities and the prospects of any claims. We can also assist in resolving the dispute, whether it be formally or informally, and can guide you through any court processes, settlement negotiations, mediations, deeds of settlement and other points throughout the life of the dispute.
• Goldman Law can also assist in negotiating and drafting new business contracts as a properly drafted agreement can increase certainty and help reduce the risks of disputes arising or worsening.

• The process of resolving a legal dispute outside of court is referred to as dispute resolution.
• This can be from formal arbitration to a mediation to general discussions and Calderbank settlement offers.
• Discourse resolution, which is frequently regarded as a low-cost option, can potentially save time and money by doing away with legal proceedings’ formalities and giving parties more influence over the result. It is possible for disputing parties to meet and discuss the matter in an effort to reach a mutually advantageous conclusion.

How can I determine the best approach to dispute resolution?

• Negotiation and mediation are typically the first steps in resolving a dispute.
• When deciding which routes to take, such as your dispute between groups or individuals, it’s crucial to keep your circumstances in mind. Are there any obvious conflicts between the two parties?
• For example, in a situation where parties are in clear conflict and cannot come to an independent agreement, arbitration will ensure that a solution is decided by an independent party and then handed down to the disputing parties.
• Mediation is a process in which the participants, with the support of the mediator, identify issues, develop options, consider alternatives and make decisions about future actions and outcomes. The mediator acts as a third party to support participants to reach their own decision.

Role of Mediator

• Mediators do not advise upon, evaluate or determine disputes. They assist in managing the process of dispute and conflict resolution whereby the participants agree upon the outcomes, when appropriate.

Facilitative mediation and mediation processes

• Mediation processes are primarily facilitative processes. The mediator provides assistance in managing a process which supports the participants to make decisions about future actions and outcomes. Some mediators may also use a ‘blended process’ that involves mediation and incorporates an advisory component or a process that involves the provision of expert information and advice. These processes are sometimes referred to as “evaluative mediation” or “conciliation”. Such processes may involve the provision of expert information and advice, provided it is given in a manner that enhances the principle of self-determination and provided that the participants request that such advice be given.
• Jaswinder Sekhon, Goldman Law Principal also has NMAS mediation accreditation.