Strategic Advice

"What should I do?"

That is the question which is regularly posed to Geoffrey.

"I am broke", or "I am being sued", so "what should I do"?

Unfortunately, businesses can face financial difficulties. When people go into business, they don't plan to fail (they might fail to plan!).

So if financial difficulties arise, there can be stress and pressure placed on that business person and their family.

If difficulties ever arise, the smart business person will obtain professional advice. Some people will be lucky enough to have obtained advice before any problems arise (see Geoffrey's "Asset Protection" tab), but many others will wait until near the end.

From many years of experience, Geoffrey knows that, in order to obtain the best advice in these circumstances, it is necessary to look at the accounting/financial information, as well as considering any legal rights or proceedings.

The way to develop the best strategy is to discuss this information in detail with the client, preferably at a face-to-face meeting, to talk about options and alternatives and to probe the real facts. it is amazing how the nuances of a face-to-face meeting can help uncover the real issues.

From having that one meeting, at minimum, the client will gain an understanding of this area of the law, in a very practical sense. This knowledge alone is invaluable. Experience tells that, by the end of the meeting, there will be an agreed strategy, which will lead the client through the difficulties. The strategy is then confirmed in writing, on a legally privileged basis, including the finer details and checklists of what needs to be done. Importantly, Geoffrey then provides details of the costs involved to implement the strategy. The client can then make an informed decision on the best action to take, armed with a strong recommendation and accurate costings.

If convenient, Geoffrey can assist the client through the processes, until to the conclusion of this strategy. Alternatively, the client can work with their other advisors, such as their accountant or lawyer, to implement the plans.

Geoffrey is able to provide privileged confidential advice to his clients. This is not the case with advice provided by an accountant or Insolvency Practitioner, no matter how qualified they may be.

Geoffrey is also able to use his 30+ years of experience in insolvency practice, as both a liquidator and Trustee in bankruptcy, to give very practical advice. This is not the case with most legal practitioners, no matter how experienced they may be with the law.

Geoffrey is able to use his business experience, such as those obtained from being a Board member of the State Chamber of Commerce and being the National Chairman of a top 10 Australian accounting group, to give very commercial and realistic advice. He knows what it is like to be in business and personally liable if something goes wrong.

Importantly, whilst members of the insolvency profession must deal with conflicts of interest, Geoffrey has no incentive to recommend any particular course of action for the benefit of gaining future fees. He won't say; "appoint an Administrator and by the way, make me that Administrator". It is a sensitive and contentious issue. Geoffrey is in a different position to that of an insolvency accountant, who is often in a difficult position to give independent advice, no matter how correct that advice may be.  Geoffrey is able to act in the interests of the director, or for one creditor, from start to finish.  The insolvency accountant cannot do the same.

The fixed fee for this initial strategic advice, for the average SME will range between $2,000 and $3,000 inc. GST and disbursements. For this fee, the client not only receives approximately 4 - 6 hours of service (e.g. reviewing Financial Statements etc., meetings and advice), but 30+ years of experience.

It has been said that a client does not simply pay for 30 minutes of time, but rather, they pay for 30 years of experience.

Asset Protection

There are risks in business.

If something goes wrong, beyond the client's control, the client's family do not deserve to lose everything.

There are ways to protect family assets, particularly the family home, before the problems arise.

It is surprising how many people wrongly think that the family home is safe, simply because it is in the spouse's name. Geoffrey has written articles and presented seminars on this subject. It is not as simple as that!

Geoffrey has developed a unique package which expressly provides protection for the family home. He backs that package with his own written legal opinion. He supplies is a series of complex documents, which support a simple clever strategy.

The end result is that the family home remains in the name of a spouse (therefore not subject to capital gains tax, fringe benefit tax or land tax), but has no equity to the point where, upon the worst case, a trustee in bankruptcy has no real interest in the property.

The standard "Asset Protection Package" can be provided for a fixed price, upon application and the fee will include an allowance for the client's advisor to be paid for their role in collating the information or, with respect to many clients, verifying the information.

You will find that it is a fair price to obtain great peace of mind.

Bankruptcy

Geoffrey was a Trustee in bankruptcy from 1990 until 2017.  He has extensive experience in all aspects of personal insolvency, from both points of view: the debtor and the creditor.

The practice of a Trustee lent itself to the special circumstances of Geoffrey being a Barrister. The work of a trustee involves many complex legal issues and needs the attention of an experienced legal practitioner. The work rarely involves the dynamics of trading activities, which is what a company Voluntary Administrator would have to deal with, through a team of staff, at the company's premises.

A bankrupt estate is usually controlled through the personal attention and involvement of the trustee, or alternatively the use of relatively junior staff guided by experienced seniors and quality control systems.

Geoffrey has strong views about the use of bankruptcy laws and the way debtors or creditors should deal with personal insolvency. He is prepared to share those thoughts publicly, as they are the way he has, in the past, run his practice. The principles still apply today.

In no order of importance;

- Many honest people are victims of circumstances which will cause, force or result in them going bankrupt. These circumstances range from another person failing to pay them, through to the person making poor decisions or simple mistakes. Bankruptcy is still recognised as being some type of a penalty for financial failure, but it is not a crime. People don't commit an offence simply because they go bankrupt. Some people do commit offences in the way they end up being bankrupt, but that subtle difference is not always appreciated. As a recognition that Bankruptcy is about rehabilitation, the period of bankruptcy in many countries is less than three years, which is the minimum period imposed under Australian law. In 2016, the Australia Government was looking at reducing the period of bankruptcy (see http://www.pc.gov.au/inquiries/completed/business/report ) and in 2021 the same subject is being reconsidered.

- If a creditor expects any reasonable return from the bankruptcy of a debtor, they must be prepared to fund a trustee to carry out investigations and then litigate. People who can afford to pay their creditors usually don't go bankrupt. People who look like they are going into bankruptcy will often take steps to protect their interests and transfer the benefit of assets to their family and friends. A creditor can't expect a trustee to successfully recover those assets without funding that trustee, directly or indirectly.

- If a debtor has "nothing to hide" from going bankrupt, they are simply working a standard job and don't want to have any future involvement with business, then they should seriously consider appointing the government department, AFSA, to act as their trustee, for no cost.

- In some cases, debtors will prefer to appoint a "private trustee" for the simple reason that they don't want any surprises. They can, before going bankrupt, obtain an understanding of the trustee's personal opinion on their situation. If anything goes wrong or changes, they will be confident that the trustee will at least try to work with them and their advisors, such as Geoffrey, to sort out any problems, fairly and efficiently.

- In many cases, the simple rule applies that the sooner you start the bankruptcy, the sooner it ends.

- It is overly optimistic to think that creditors will simply go away over time.  A Judgment Debt will survive 12 years before it is barred at law (and on your credit rating), which is a lot longer than the three years of bankruptcy.

- A debtor should not delay the inevitable and force a creditor to make then bankrupt, by that creditor having to obtain a court order (through a creditors petition).  The delaying tactics will only frustrate, annoy and anger creditors, who suffer a greater loss by having to spend money on legal fees chasing the money that is rightfully owed to them.

- If a debtor voluntarily appoints a "private" Trustee, typically an accountant in public practice, then it will cost some amount of money, compared to the free service of the government department known as AFSA. The Debtor should feel some comfort that there will be no surprises with a "private" trustee, assuming they have been full and frank with their disclosures and in preparing the forms.  The latter can go horribly wrong, with simple mistakes in the form resulting in severe penalties.

- There is a lot of literature on the internet about the practice and procedure of Personal Insolvency. The best site, arguably, is the government department which administers personal Insolvency, previously known as ITSA and now known as Australian Financial Services Authority; www.afsa.gov.au 

Geoffrey offers his fellow professionals the opportunity to obtain some quick short advice about the practice and procedure of personal insolvency. However, if an insolvent person wants advice about whether or not to go bankrupt, then that is complicated and often a delicate and emotional issue. It involves Strategic Advice.

In Geoffrey's opinion, the proposed trustee should not be the person to give any contentious advice, particularly if they are going to benefit from the payment of fees as Trustee.

Geoffrey is often approached by people who say "I am broke, what do I do?" The role for Geoffrey is then to provide advice, to guide the person through that first decision of "what do I do" and then work with a warmly recommended registered trustee.

Chartered Accountant

Geoffrey started his accounting career back in November 1982, at the end of the first year of full time University. He worked full time and completed his Bachelor of Commerce Degree with Merit, still within three years. As a result of him working whilst he was studying, he was immediately able to do the Professional Year, as it was then, and became fully qualified as a Chartered Accountant by the time he was 21.

According to a survey conducted by Chartered Accountants Australia and New Zealand in the 1980s, by becoming a partner of the firm Peter Rodgers & Associates on his 23rd birthday, Geoffrey became the youngest partner ever appointed to a Chartered Accountancy firm. The firm of Peter Rodgers & Associates merged to become Love & Rodgers and then ultimately Hall Chadwick. The youngsters Rod Sutherland and Rick Jirsch sat next to Geoffrey at Peter Rodgers & Associates back in 1983, before starting the very successful firm of Jirsch Sutherland.  The same occurred with Geoff Reidy, of Rodgers Reidy, in the 1990s and many other employees who are now partners, directors or managers of Insolvency. 

Geoffrey was the Managing Partner of his firm for many years and National Chairman of the Hall Chadwick group in 2005 and 2006. He also chaired the National Marketing Committee and worked closely with the marketing team for years. In the end, he was instrumental in forming a marketing division of the accounting firm.

In 1995, Geoffrey was awarded the title of Young Accountant of the Year by the magazine New Accountant (which was owned by David Koch of Chanel 7's today show) 

Geoffrey has prepared "expert accountants" reports on issues such as loss of profits, business valuations or insolvency reports and uses that knowledge when, as a barrister, he drafts instructions to expert accountants.  His knowledge of accounting gives him an advantage when acting as Counsel in Family law financial matters (search accountantbarrister). 

Geoffrey is a Fellow of Chartered Accountants, ANZ

Liquidator/Receiver/Controller

Geoffrey was a registered liquidator for 30 years

Geoffrey had had a long and interesting career as a liquidator.

Back in 1994, he wrote a Discussion paper for the IPAA (now ARITA) on the deficiencies in the new law, as it was then, on Voluntary Administrations. Around that time, when the ASIC conducted a survey of the Voluntary Administrations conducted by all insolvency practitioners around Australia, his files represented 1/3 of those reviewed for that survey.

He was one of the few practitioners invited to give evidence at the Senate Enquiry Inquiry into Liquidators and Administrators at the Public hearing (http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Completed_inquiries/2008-10/liquidators_09/hearings/130410)

Geoffrey has traded companies and faced personally liability in the $100,000s for the supply of goods and services to those companies. It is not an experience had by many legal practitioners. He has had to address a whole work force and tell them that their employment is being terminated, then and there. He has met with supplies and financiers, seeking extension and continuation of facilities.

Geoffrey has extensive commercial experience from being a registered liquidator and has met many very interesting people in his time. Those stories are best presented over a conversation!

Australasian Investments (HK) Limited

Geoffrey has owned this Hong Kong based company since 2003 and has loved visiting and working in the city of Hong Kong, the Special Administration Region in China. It is a dynamic city, with a strong trustworthy English based legal system, up until at least 2020.

Geoffrey's experience and professionalism is a great asset to this company.

Australasian Investments (HK) Limited provides opportunities to Asian investors to acquire the rights to valuable products and exclusive services created in Australia. In effect, the company sells great Australian business ideas by delivering prestige investment opportunities to investors, through our contacts in Hong Kong. The Australian clients recognize that foreign investors are better positioned to exploit their products in the larger markets throughout Asia.

AIHK is able to obtain a regular flow of business opportunities from within Australia. Its first class opportunities come from the wide business connections Geoffrey has forged over 30 years of business. These opportunities relate to very successful businesses wishing to expand into Asia. Whilst these businesses are of premium quality and available at a premium price, they are prepared to present themselves on favourable terms (e.g. deferral of the capital purchase payment) to any prospective Asian investor.

The other class of opportunities relate to businesses which have reached the point of establishing their product in the market, but have not had the capital or resources to sustain their development. The company has a strategic connection with the turnaround, reconstruction and insolvency profession in Australia. These accounting firms are able to provide a constant flow of opportunities at favourable prices, including discounts on the purchase price,. 

Qualifications and Appointments

THOUGHTS AND EXPERIENCES

"When the time is right, in a social setting, I will share them with you,