This document provides information about parenting, de facto relationships, and estate planning from the law firm DTL. It discusses who is considered a legal parent under the law, including donors using assisted reproductive technology. It also outlines what constitutes a de facto relationship and factors considered by courts, and covers property division for de facto couples. Finally, it discusses wills, powers of attorney, guardianship, and evidencing relationships to properly manage finances and medical decisions.
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Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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2. ABOUT DTL
We are LGBTQI
We are experienced family and property lawyers
We know the complexities of relationships
We do fixed fees for clients’ certainty and transparency
We are always accessible
We give a shit about our clients
4. Who is a parent
Consideration of Commonwealth and State law:
Section 60H Family Law Act 1975 (Cth)
Section 14 Status of Children Act 1996 (NSW)
Section 65C Family Law Act 1975 (Cth)
Section 12 Surrogacy Act 2010 (NSW)
5. Who is a parent
Case Study: Re Patrick (2002) 28 Fam LR 579
The sperm donor wanted to be a parent of Patrick*
The parenting agreement was entered into prior to the birth of
Patrick
The parenting agreement was evidence of the parties intentions
The court considered what was in the best interests of Patrick
Also see AA v BB and LU v Registrar of Births Deaths and
Marriages (No 2)
6. Who is a parent
Donors
Donors are not regarded as legal parents, regardless of
intention
Donors may later seek parenting orders for the care and
wellbeing of a child
Donors may enter a parenting agreement with the other
party/parties for the purpose of setting out the parties’
intention with respect to the child’s care and wellbeing, and
the child’s contact with the donor and other party/parties
7. Who is a parent
Donors continued
Parenting agreements are not binding or enforceable, but
they are important from an evidentiary point of view
Often other documents are important to evidence such
intentions, including Wills
Handout (Parenting Agreement example)
9. What is a de facto?
There is no exhaustive definition
The court will consider:
i. the length of the relationship;
ii. the nature of the relationship;
iii. if the couple were engaged in a sexual relationship;
iv. the financial arrangements that existed between the parties
during the relationship;
10. What is a de facto?
vi. the arrangement between the parties for the ownership of assets
and whether they own properties jointly;
vii. the degree of commitment to the relationship;
viii. whether the relationship has been registered in any state or
territory;
ix. the existence of any children; and
x. the reputation and public aspects of the relationship.
11. What is a de facto?
Case Study: The unwilling de facto – Toms v Centrelink 2014
Friends with benefits
Freedom of sexuality in the age of Grindr and Tindr
Intention of the parties is sometimes different to relationship
presentation and factual de facto consistencies
14. The basics
Two year minimum cohabitation + de facto before a party can apply
to the court
What is the length of the relationship?
Who owns the assets? Joint ownership vs separate
What are each party’s financial contributions?
What are each party’s non-financial contributions?
Is there a homemaker?
What is the health of the parties?
What are the incomes of the parties and what are the ongoing
employment prospects like?
15. Consent orders
Consent orders are binding court orders that are rarely
appealed
Parties can informally agree on a settlement before
engaging a lawyer for preparation of consent orders
Parties can formally agree on a settlement through
negotiation or mediation, then proceed to consent orders
Consent orders require full disclosure and a fair split of the
assets of the relationship between the parties
16. Disputes about property
Issues in dispute usually revolve around perception of
contributions and narrow views of asset protection
Sometimes one party earns considerably less than the other
and that party also acts as homemaker
Sometimes one party has a related family business
generating a substantial income for the parties, but on
separation the other party might argue that they contributed
to that wealth directly or indirectly
17. Disputes about property
The court will consider prescribed inidicia in the Family Law Act
covering age, health, income, children, standard of living of the
parties during the relationship, opportunities for employment and
training to gain employment and so on.
19. The Will
Rules for what happens to your money and assets after
you die including appointing beneficiaries
Appoints an executor to administer your estate
Sets out your intentions with respect to donation of
organs, funeral arrangements and charitable gifts
Cannot assign an interest in superannuation
20. No Will when you die
The Succession Act determines who gets what, placing
the deceased’s spouse in possession of the lion’s share
21. Family Provisions Claims
People left out of your Will may be entitled to claim on
your estate
If you cut somebody out, give solid reasons
If you have been left out, speak to us first
The court will consider the plaintiff’s relationship with the
deceased including financial, emotional and living
relationship
22. Powers of Attorney //
Enduring Guardians
A Power of Attorney give financial powers to an attorney
while you are alive, usually when you lose capacity
An Enduring Guardian is a person with power to make
medical and care decisions on your behalf when you
lose capacity
Who do you trust with your money and health if you
cannot make decisions independently?
23. Evidencing your relationships
Register you relationship with Births, Deaths and
Marriages
Execute a Will
Execute a Power of Attorney
Execute an enduring Guardian document
Have your Medicare cards sychonised