Ipso facto clauses now a problem

In addition to introducing “safe habour” legislation, the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (Cth) places restrictions on ipso facto clauses. Ipso facto clauses are clauses that allow for termination due to insolvency. The Act limits the ability to enforce these clauses during periods of voluntary administration, receivership or schemes of arrangement. The aim of the law is to give companies a better chance to recover from financial hardship.

What do you need to do? Don’t try and rely on an ipso facto clause without obtaining legal advice. For future contracts, consider what other options, if any, you want available if a company is in administration – for example, a clause that enables you to delay payment may be useful. You also want to ensure that termination for non-performance is not linked to termination for insolvency. This will enable you to still terminate for performance related matters.

The Australian Sports Commission – Mandatory Governance Principles

The Australian Sports Commission (the ASC) released the Sports Governance Principles in 2002 (revised in 2007 and 2012) as a response to the increased importance of governance practices in the performance of sporting organisations. In 2013, seven highest funded sports were required to comply with the Mandatory Sports Governance Principles (the Principles). In 2015 the …
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Duties and Obligations for Charities

The introduction of the Australian Charities and Not-for-profit Commission Act (ACNC Act) and the Australian Charities and Not-for-profit Commission Regulations (ACNC Regulations) on 3 December 2012 changed both directors and company obligations for charities in Australia. The ACNC Act established the Australian Charities and Not-for-profit Commission (ACNC) which has largely replaced the Australian Securities and …
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