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TODAY'S LEGAL NEWS
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| ARTICLES AND ALERTS |
CAN A COMPANY WHICH DOES NOT HAVE SUFFICIENT FUNDS TO PAY ITS DEBTS NEVERTHELESS AVOID INSOLVENCY?
Author: Valentina Misevska
Publish Date: January 8, 2007
The answer is “yes”, if that company has the financial support of another company or person.
The Supreme Court of Queensland recently found that a company which had an established history of financially supporting another company (Company X) and which expressed an intention to continue to support Company X could save Company X from a finding that Company X was insolvent.
Reynolds v Neumedix Biotechnology Pty Ltd [2006] QSC 302
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