Insurance Law

Contact: Mark Brookes and Tom Pepper,  Carter Newell (Queensland, Australia)

Introduction

In the recent case of Thomas & Anor v Arthur Hughes Pty Limited & Ors [2015] NSWSC 1027, an attempt by a family to use liquidation as a vehicle to access the wealth tied up in their company backfired when the liquidator succeeded in having constructive trusts in favour of the Company over property transferred prior to liquidation.

This case serves as a reminder that the nature of a corporation, being a separate legal entity, has strict compliance requirements which must be observed even in circumstances where the company is wholly controlled by a family with similarly aligned interests.

To read the full article click here or visit www.carternewell.com