Originally Posted by
Section28- BE
'Mick'-
When does the Deed of Cross-Guarantee (DOCG) that is being relied upon in this instance, I 'believe'- get extinguished for that purpose.....????
And would appreciate being educated myself- do not get me wrong on that, at all.
Voluntary Admin or Liquidation (in this case)....????
ASIC link:
https://asic.gov.au/regulatory-resou...ency_statement
Extract #1:
Extract #2:
What is the go- here, with this ??
With thanks & rgds
S28- BE
Okey doke, S28, so my understanding of Deeds of Cross Guarantee is that they are largely used to simplify the reporting requirements for complex businesses. It is important to note that the 'guarantee' we're talking about here is not a financial guarantee - there's no implied cross guaranteeing of debts and liabilities - it's simply a cross-guarantee of some of the obligations under the Corporations Act 2001.
For example, DOCG allow Virgin (or any 'parent' company for that matter) to compile and lodge just one aggregated set of financial reports rather than having to present P&Ls and balance sheets for each of the individual subsidiary entities. DOCG don't absolve businesses from keeping the requisite accounting records at the subsidiary entity level they just don't have to report at that level.
That relief from reporting however does not persist under administration. The administrator needs to unpick the quilt into its individual threads and present P&Ls and balance sheets for each and every subsidiary entity. If the business's accounting systems have been set up properly that individual entity reporting requirement shouldn't be too onerous but the less of it that you have to do the better. It's one of the reasons why one of the first things that the administrator looks to accomplish is clearing the decks of any extraneous work by winding up however many dormant entities they can. Which is what led us to this Newco 2 matter.
Now, to a more mundane matter, how do you change font size?
Last edited by MickG0105; 31st Jul 2020 at 01:40.