Legal news
If your business is restructuring, contractual rights triggered solely by the restructure or financial distress may be rendered unenforceable under section 454N of the Corporations Act 2001 (Cth). This statutory protection can help a business stabilise and continue trading through difficult times. This article reviews a recent case of Okami SA Newton Pty Ltd v Newton SC Pty Ltd which considered the operation of this section.
Active Super was found to have made false or misleading representations by using unequivocal language, and engaged in conduct liable to mislead the public in relation to investments it made.
The case provides further insights into the latest developments on ASIC’s ongoing greenwashing enforcement action.
Last year, the ATO has updated its ruling TR 2013/5 Income tax: when a superannuation income stream commences and ceases. This included that the ATO’s view that if a super pension ceases (eg because of failure to make minimum pension payments, that a new pension will not start until a new pension commences (eg via new pension documents).
On 6 December 2024, the Australian Securities & Investments Commission (ASIC) updated its Regulatory Guide: Duty to prevent insolvent trading: Guide for directors (RG 217).
The guide contains key principles intended to help directors comply with their duty to prevent insolvent trading and how to establish safe harbour protection through proactive monitoring and timely action.
2025 will see the biggest changes to Australia’s Mergers and Acquisitions regulatory landscape for a considerable time. On 10 December 2024, the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 received Royal Assent resulting in a shift from a voluntary informal review scheme to a mandatory administrative review process. This is a clear statement to focus on protecting competition through merger control.
Last year, the Federal Court of Australia handed down its decision in Australian Securities Investment Commission v Vanguard [2024] FCA 308. This case serves as a reminder that business who are making sustainable investment claims must ensure that those claims are not misleading or deceptive in nature.
In ASIC’s first case against alleged greenwashing conduct, the court has ordered that Mercer Superannuation (Australia) Ltd pay a landmark $11.3 million penalty after it made misleading statements about sustainable and environmentally-friendly superannuation investment options marketed to its members.
Read on for key details of the case, and a breakdown of what your business can do to avoid greenwashing.
If you are a franchisor or a franchisee, it is important to be updated on the upcoming changes to the franchising Code of Conduct. The new Code contains a number of changes which will significantly increase the compliance burden and risk for the franchisors. The new Code is set to commence on 1 April 2025, franchisors may need to redraft the franchise agreements before that date to avoid penalties.
The ATO has finalised its practical compliance guidance Practical Compliance Guideline PCG 2024/3 (Guideline) to clarify how the ATO will apply its compliance resources in relation to the application of section 99B when Australian residents receive payments or benefits from non-resident trusts. The guideline outlines common scenarios, record-keeping expectations, and low-risk arrangements.
In the West Australian case of Dryandra Investments Pty Ltd v Hardie by her guardian Ian Yorrington [2024] WASC 248 (Dryandra case) the trustee sought orders, pursuant to section 90 of the Trustees Act 1962 (WA), that the Court approve and assent to variations to the trust deed of the Dryandra Trust (Trust).
It is reported that Rachael Gunn (better known as ‘Raygun’) who represented Australia in Break Dancing at this year’s Olympics in Paris has sent a letter of demand to Steph Broadbridge alleging potential infringements of her unregistered trade marks and copyright should Ms Broadbridge perform her musical ‘Raygun: The Musical’. The musical was set to be performed on Saturday, but was pulled following Raygun’s letter of demand.
As previously noted, the Government has released regulations to permit the conversion of legacy pensions and reserves over a 5 year period and to better allow allocations from non-pension reserves. These regulations have now been tabled in parliament.
