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23 February 2023
The High Court has recently handed down two significant decisions concerning the operation of the unfair preference provisions in the Corporations Act 2001 (Cth). This seminar will consider the High Court’s abolition of the “peak-indebtedness rule” and its analysis of issues associated with running accounts in Bryant v Badenoch  HCA 2. It will also consider the High Court’s finding in Metal Manufacturers v Morton  HCA 1 that set-off is not available as a defence to a preference claim, as well the potential broader application of the decision in respect of other voidable transaction claims and insolvent trading claims.
The High Court decision has clarified how liquidators of corporate trustees may deal with trust assets and the application of the priority regime prescribed by the Corporations Act 2001 to the distribution of the proceeds of trust assets to trust creditors. The decision also resolves the long-standing tension between the decision of the Full Court of the Supreme Court of South Australia in Re Suco Gold Pty Ltd (in liq) (1983) SASR 99 and the Full Court of the Supreme Court of Victoria in Re Enhill Pty Ltd  1 VR 561.
This CPD is a seminar on the interaction between bankruptcy and non-bankruptcy Courts. Barrister Christopher Brown exmaines many of the common statutory provisions that are relevant to bankruptcy cases and recent cases that addresses jurisdictional and standing issues. The CPD then concludes with a Q & A session with Federal Circuit Court Judge Riethmuller