The Federal Court granted an order to wind up Splendid Growth Fertilisers Pty Ltd (SGF) on...
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The Federal Court granted an order to wind up Splendid Growth Fertilisers Pty Ltd (SGF) on 1 August 2021, based on a winding up application tied on the 18 June 2021. Ros Daniels was appointed liquidator of SGF. Ros' investigations of SGF's books and records reveal the following: Since September 2020 SGF's sales of fertilisers have been steadily falling. A new competitor in the fertiliser market, offering 100% organic fertiliser has been steadily encroaching on SGF's market share. This has resulted in SGF's bank, XYZ Ltd, dishonouring SGF cheques, despite SGF renegotiating a larger bank overdraft and delaying payment of its suppliers. A number of SGF's suppliers including Sandy Creek Supplies Pty Ltd had contacted SGP's directors, Peta and Jess, requesting payment or they would discontinue trading Ros is particularly interested in the following payments made on 15 February 2021. Malcolm, Peta's husband received $250,000. The payment to Malcolm was noted in the SGF's financial statements as an employee bonus. However, Malcolm is employed on a part-time basis and wono more than 15 hours a week, answering the telephone, and performing bookkeeping functions. Sandy Creek Supplies Pty Ltd, SGF's oldest supplier received $150,000 being in full payment of the outstanding balance due on stock supplied to SOF Ros estimates that the unsecured creditors of SGF will receive no dividend from the liquidation of SGF Advise Ros as to whether she has any grounds to recover monies from Malcolm and Sandy Creek Supplies Pty Ltd under Part 5.78 of Corporations Act 20017 Please answer using the ILAC format, referring to case law and sections of Corporations Act 2001 to support your answer. The Federal Court granted an order to wind up Splendid Growth Fertilisers Pty Ltd (SGF) on 1 August 2021, based on a winding up application tied on the 18 June 2021. Ros Daniels was appointed liquidator of SGF. Ros' investigations of SGF's books and records reveal the following: Since September 2020 SGF's sales of fertilisers have been steadily falling. A new competitor in the fertiliser market, offering 100% organic fertiliser has been steadily encroaching on SGF's market share. This has resulted in SGF's bank, XYZ Ltd, dishonouring SGF cheques, despite SGF renegotiating a larger bank overdraft and delaying payment of its suppliers. A number of SGF's suppliers including Sandy Creek Supplies Pty Ltd had contacted SGP's directors, Peta and Jess, requesting payment or they would discontinue trading Ros is particularly interested in the following payments made on 15 February 2021. Malcolm, Peta's husband received $250,000. The payment to Malcolm was noted in the SGF's financial statements as an employee bonus. However, Malcolm is employed on a part-time basis and wono more than 15 hours a week, answering the telephone, and performing bookkeeping functions. Sandy Creek Supplies Pty Ltd, SGF's oldest supplier received $150,000 being in full payment of the outstanding balance due on stock supplied to SOF Ros estimates that the unsecured creditors of SGF will receive no dividend from the liquidation of SGF Advise Ros as to whether she has any grounds to recover monies from Malcolm and Sandy Creek Supplies Pty Ltd under Part 5.78 of Corporations Act 20017 Please answer using the ILAC format, referring to case law and sections of Corporations Act 2001 to support your answer.
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ANSWER Yes Ros has grounds to recover monies from Malcolm and Sandy Creek Supp... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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