Using Barnes v Addy To Attack Phoenix Transactions - Camilla Clemente
Partner
Ashurst
The High Court decision in Ancient Order of Foresters in Victoria Friendly Society Limited v Lifeplan Australia Friendly Society Limited [2018] HCA 43 (10 October 2018) 2018] HCA 43 is not an insolvency matter per se - but it does deal with the situation that many insolvency practitioners will be familiar with, where key staff move to a business rival to utilise:
“valuable confidential information of their employer...to attack the commercial base of that employer...to take as quickly as possible the business presently enjoyed by [their former employer] and replicate its success for the benefit of the new prospective employer”
Camilla Clemente, (Ashurst acted for the successful respondents) takes you through the decision with a particular focus on phoenix transactions and to understand when it might provide a better way to claw back a business that has been transferred and what other tools are available to Insolvency practitioners in relation to Phoenix situations.
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