Australia's new ipso facto regime came into effect as of
1 July 2018. The regime enacted in September 2017 through the Treasury Laws Amendment (2017 Enterprise
Incentives No. 2) Act 2017 amends the Corporations
Act 2001 (Cth) providing for the operation of the ipso facto stay for certain corporate restructuring and insolvency
The reform is designed to improve
the likelihood of recovery for companies experiencing trading difficulties by
limiting circumstances where a counterparty can modify or terminate an existing
contract based solely on the 'fact or act' of an insolvency event or trading
difficulties. The new regime applies to contracts entered after 1 July 2018.
Parties need to ensure that contracts entered after this date protect parties'
rights in situations of default and comply with the new regime. Anti-avoidance
provisions capture contract terms that attempt to circumvent the Act and
limited exemptions are apply.
the Courts will interpret the new regime is yet to be seen. In the meantime,
the potential implications for clients in the construction and property sector
needs closer review.
Landgate Implements Tougher Measures to Mitigate Fraud
who deal with land in Western Australia are required to obtain a Verification
of Identity (VOI) statement. To obtain a VOI, they must produce
documentation and have their identities verified in person by an approved
agent, such as a lawyer, conveyancer or Australia Post. Earlier this year,
Landgate introduced changes to its VOI practice which extends this
requirement to buyers and caveators. This ensures that errors and improper
transactions are minimised, and aligns the paper-based transaction requirements
with those of electronic-based transactions.
Landlords and managing agents should remain aware of the nature and extent of the statutory obligation to provide a disclosure statement to prospective retail tenants. Failure to meet this obligation may expose landlords to an order to pay compensation for losses suffered by the tenant or risk termination of the commercial tenancy agreement by the tenant.
Occupier's Liability - you may be liable for personal injury that occurs on someone else's land
You or your business could be responsible for injuries or damage
that occur on premises, whether or not you are the owner of the land or are
leasing the land. If you occupy land or you exercise control over land that is
adjacent to, but outside the boundary of your property, you may be responsible
for ensuring that those premises are kept safe.
Is your annual turnover AUD 3m or more? You have until February 2018 to prepare for new cyber laws
New cyber-security laws which take effect on 22 February
2018 will see the introduction of mandatory reporting of data breaches in
Australia.Under the new law, entities
must report any data breaches or suspected breaches to the Privacy Commissioner
and affected customers as soon as practicable after the breach.
the Western Australian Small Business Commissioner conducted an investigation
into the non-payment of subcontractors on construction projects administered by
Building Management and Works (BMW) between 2008 and 2012. The Final Report
was presented to the Minister for Small Business in March 2013
with advice and recommendations.
Legal played a crucial role in conducting this investigation, and the Final Report
has been significant in driving a number improvements and changes in the
construction industry, particularly in relation to the procedure for paying