Zoe and Kim are directors and shareholders of Green Finger Pty Ltd (GF), a company which...

 

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Zoe and Kim are directors and shareholders of Green Finger Pty Ltd (GF), a company which provides gardening services on the Gold Coast. On 1 March 2021, Earth Movers Pty Ltd (EM) a company owned by Kim's brother Alec, supplied an excavator to GF. Alec is not a shareholder or director of GF A payment of $45,000 was due to EM (an unsecured creditor) on 15 April 2021 but not paid by GF. On 21 May 2021 Alec asked Kim for payment Kim told Alec that GF had some cheques dishonoured, owed taxes to the Australian Tax Office (ATO) and that the bank had refused an application by GF to obtain a business credit card. Despite this, GF paid $40,000 cash to EM on the same day. On the 22 May 2021 Kim made an appointment with her external accountant Bob Sands as she was concerned that having paid EM, GF did not have any monies to pay the ATO. After looking at the GF's accounting records Bob advised Kim that GF should sell the excavator to Kim for $15,000 to protect the asset from claims by GF's creditors. Kim agreed as she trusted Bob's advice and the excavator was sold by GF to Kim for $15,000 on 22 May 2021. On 20 July 2021, an application was filed with the court to wind up GF by a creditor. On 1 September 2021, the court made an order to wind up GF Robin was appointed as the liquidator to GF, who reported that unsecured creditors would not receive anything on winding up. Advise Robin as to whether she has any grounds to recover monies or property from EM or Kim under Part 5.7B of Corporations Act 2001? For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac). BIVS Paragraph Arial 14px AV I XOOQ 844 WORDS POWERED BY TAY Zoe and Kim are directors and shareholders of Green Finger Pty Ltd (GF), a company which provides gardening services on the Gold Coast. On 1 March 2021, Earth Movers Pty Ltd (EM) a company owned by Kim's brother Alec, supplied an excavator to GF. Alec is not a shareholder or director of GF A payment of $45,000 was due to EM (an unsecured creditor) on 15 April 2021 but not paid by GF. On 21 May 2021 Alec asked Kim for payment Kim told Alec that GF had some cheques dishonoured, owed taxes to the Australian Tax Office (ATO) and that the bank had refused an application by GF to obtain a business credit card. Despite this, GF paid $40,000 cash to EM on the same day. On the 22 May 2021 Kim made an appointment with her external accountant Bob Sands as she was concerned that having paid EM, GF did not have any monies to pay the ATO. After looking at the GF's accounting records Bob advised Kim that GF should sell the excavator to Kim for $15,000 to protect the asset from claims by GF's creditors. Kim agreed as she trusted Bob's advice and the excavator was sold by GF to Kim for $15,000 on 22 May 2021. On 20 July 2021, an application was filed with the court to wind up GF by a creditor. On 1 September 2021, the court made an order to wind up GF Robin was appointed as the liquidator to GF, who reported that unsecured creditors would not receive anything on winding up. Advise Robin as to whether she has any grounds to recover monies or property from EM or Kim under Part 5.7B of Corporations Act 2001? For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac). BIVS Paragraph Arial 14px AV I XOOQ 844 WORDS POWERED BY TAY

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