INSOLVENCY TRADING TRUSTS UPDATE

It seems that the weight of judicial authority is moving towards confirming what has been the position in Victoria for many years and that is, that the statutory priorities regime set out in the Corporations Act 2001 apply in the case of an insolvent corporate trustee. Recent cases in Queensland are moving towards this position.

It should be noted that the Victorian Court of Appeal in Re Amerind is on appeal to the High Court.

Hopefully the High Court will put this question beyond doubt.