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Don't Gift Money to Your Business - Be a Secured Creditor

Discussion in 'Business Legal Issues' started by RPI, 1st Feb, 2017.

  1. RPI

    RPI Well-Known Member

    Joined:
    31st Aug, 2016
    Posts:
    74
    Location:
    Brisbane
    Hi All

    New year and the Christmas Cashflow issues have sent some more people under.

    Those that gifted their equity to the business are now at the back of the que behind the
    Secured Creditors
    Unsecured Creditors
    Liquidator/Administrator

    If they had instead setup a disc trust, gifted the equity to it (or loaned in some circumstances) and then lent that money to the business via loan agreement with a PPSR charge then their entity would have been at the head of the cue, or at least only second to the banks.
     
  2. Terry_w

    Terry_w Active Member

    Joined:
    30th Aug, 2016
    Posts:
    37
    Location:
    Sydney