Credit Management in Australia - March 2015

The Publication for Credit and Financial Professionals I N A U S T R A L I A

Check our website ... www.aicm.com.au

Volume 22, No 3 March 2015

Be ready with: International perspective Legal updates & practical tips Options for training you and your team

What will2015 bring?

2015

CREDIT MANAGEMENT IN AUSTRALIA • March 2015

Queensland Division: Christmas celebrations.

NSW Division: Symposium speakers and panelists.

SA Division: Lisa Anderson and Mike Hayes (Lynch Meyer Lawyers).

38

41

44

VIC/TAS Division: Melanie Veld, Rosina Edgar (Mercedes Benz), Maureen Grant (Lindt) and Charles Tims (Tuftmaster Carpets).

WA Divisioin: Meet some of your councillors.

47

EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:The Editor, Level 1, 619 Pacific HighwaySt Leonards NSW 2065or Email: [email protected]

DIRECTORS

Australian President – G.L. Morris MICM CCE

Australian VP, Legal Affairs – J.A. Neate MICM

Professional Development – S.D. Mitchinson LICM

YCPA & CCE – G.C. Young MICM CCE

Member Services – J.G. Hurst FICM CCE

Finance – G. Odlum MICM CCE

CHIEF EXECUTIVE OFFICER

N. Pilavidis MICM CCE

Level 1, 619 Pacific Highway, St Leonards NSW 2065

Tel: (02) 9906 4563, Fax: (02) 9906 5686

Email: [email protected]

EDITOR/PUBLISHER

Nick Pilavidis | Email: [email protected]

CONTRIBUTING EDITORS

Colin Magee NSW

Murray Ashford QLD

Gail Crowder SA

Warren Meyers WA

Donna Smith VIC/TAS

ADVERTISING MANAGER

Tony Paul

Association Media

Tel: 0401 917 799


EDITING & PRODUCTION

Anthea Vandertouw

Ferncliff Productions

Tel: 0408 290 440


THE EDITOR reserves the right to alter or omit any article or

advertisement submitted and requires idemnity from the advertisers

and contributors against damages or liabilities that may arise from

material published. CREDIT MANAGEMENT IN AUSTRALIA is

published by the Australian Institute of Credit Management, Level 1,

619 Pacific Highway, St Leonards NSW 2065. The views expressed in

CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of

Australian Institute of Credit Management, which does not expect or

invite any person to act or rely on any statement, opinion or advice

contained herein (whether in the form of an advertisement or editorial)

and neither the Institute or any of its employees, agents or contributors

shall be liable for any opinion contained herein. © The Australian

Institute of Credit Management, 2014.

50

Message From the President 4

Credit ManagementCredit Management given Royal Seal of approval 6

Credit Management in Germany 7

5 steps to improve your Credit Management 8 by not taking actionBy Arnoud Visser, OnGuard

Debt Collectors: Custodian of your company’s 9 purse strings and goodwillBy Phylline Comia AIPA MICM

LegalPPSA Retention of Title Precedent Case – Debtor 14transfers to Related Entities and Lay-by SalesBy Daniel Turk

Statutory demands – eliminating the risk 17By Karl Hill

The importance of timing 20By Kim Powell

AICM – Can We Help?Legal Fees Incurred by Insolvency Professionals 23Caveat Priority 24Costs of Defending Preference Claims 25Preference Claim Action Timing 26Electronic Service of Originating Process 27

DevelopmentPresentation Performance Techniques: 29 Speaking up a Storm … Maker or BreakerBy Peter Buckley

AICM Training News 32Manage Bad and Doubtful Debts 33Factoring and Invoice Discounting 34Manage Overdue Customer Accounts 35

PrivacyDefault Listing and Credit Repair – some tips 36 for two potentially troublesome areasBy Michael Hartman

COSL to CIO 37

ASSOCIATION MEDIA

For Advertising Opportunities

in Credit Management In Australia

CALL Tony PaulPhone:

0401 917 799


Volume 22, Number 3 – March 2015

Michael Hartman

36Kim Powell Peter Buckley

20 29

Around the StatesQueensland 38New South Wales 41South Australia 44Victoria/Tasmania 47Western Australia/Northern Territory 50New Members 53

PromotionsYoung Credit Professional of the Year 312015 AICM Annual Conference 54

Daniel Turk

14Arnoud Visser Phylline Comia

8 9

4 CREDIT MANAGEMENT IN AUSTRALIA • March 2015

aicmf rom the p res iden tf rom the p res iden t

Welcome to the second ever edition

of our soft copy magazine.

It will allow us to ultimately bring

you more editions of the magazine each year

and more timely editions without the long

lead times of old. The economic cost is much

lower thus more quickly restoring our financial

position and allowing us to better develop

other areas.

It is now more than 3 years since the

Personal Property Security Act came into

play and whilst it is becoming second nature

to most of us there are also some of us who

are writing history with various legal battles

having recently been completed or underway.

We will continue to bring these changes to you

and would draw your attention to an article by

Daniel Turk on page 14 of this issue.

March brings the first birthday of the

Privacy Amendment (Enhancing Privacy

Protection) Act 2012 and the end of the

deferment of the requirement for commercial

credit providers to be a member of an External

Dispute Resolution Scheme (EDRS). Just

before this edition closed we were pleased to

learn from the Attorney-General that he has

decided to retain the exemption indefinitely.

We anticipate his request to the Department

should see revision of the EDRS Regulation

to reflect his decision accordingly. We were

pleased to work alongside our sponsors and

members alike together with the Australian

Finance Conference to achieve this result.

We must give our thanks and gratitude

to our executive and Board who worked with

Raj Venga and his team at the Credit and

Investments Ombudsman (CIO – formerly

COSL) to have available to all AICM members

the opportunity to join their EDRS should

the exemption have lapsed in March. We

understand the CIO would still entertain

applications from members who still wish to

join an EDRS although this may not be at the

fixed fee previously advised. We suggest you

contact the CIO direct.

The indefinite extension of the EDRS

exemption does not mean Privacy is dead.

The changes in the Privacy Amendment Act

are real and compliance remains a central

issue for credit providers be they consumer

or commercial. The AICM will continue to run

events and workshops to keep you “current”.

In November The Treasury issued an

Exposure Draft of the Insolvency Law Reform

Bill 2014 and sought submissions by December

19. The timing set by The Treasury was tight

however your Board was able to review the

changes and provide a submission to the

Government expressing our concerns in some

areas and our support of others.

We were concerned that the objective of

providing greater transparency and information

to creditors by providing more information,

more often, may cause an increase in costs to

the administration. The direct consequence of

increased costs to an Insolvency Practitioner

is a reduction in any possible dividend

to creditors. We urged these proposed

requirements be minimised to the degree

possible.

We encouraged an IPR to simplify reports,

status updates and details of costings. Perhaps

containing an invitation for further enquiry or

ideally a link to the Practitioner’s website where

such further information may be available.

We also recommended and encouraged

distribution of most materials electronically and

requested attendance of creditors’ meetings by

telephone or video conference be regulated.

We especially supported the

implementation of the entitlement for creditors

to resolve to appoint for the external review

of administrator’s remuneration as per Section

90-27 of the IPR’s.

Many thanks to SA Director James Neate

and his Legal Affairs Team for completing

our submission in short time. It is very much

appreciated.

We expect this year to be one of our best

as we work closely with Dun & Bradstreet

to improve the recognition of our more

youthful members and make the Young Credit

Professional Award the best ever. Bigger

events are planned for the award dinners

to showcase the talents and continue to

recognise outstanding performers like 2014’s

Grant Morris CCE

Australian

President

March 2015 • CREDIT MANAGEMENT IN AUSTRALIA 5

aicma n n u a l r e p o r tf rom the p res iden t

Bec Edmiston and Anna Golubeva. They are

outstanding ladies and if you are yet to hit your

thirties you should give serious thought to

entering the competition. Even if you don’t win

the national title the recognition you receive

within your business and state should not

be underestimated. Win, lose or draw it is an

opportunity to raise your personal profile and

worth in many arenas.

The CCE exam will be held in a few weeks

and all experienced members who have yet

to achieve their CCE should strive for this

formal recognition. If you know your stuff,

and I think the vast majority do, then don’t be

frightened to give it a go. Five members of

my team became CCE’s in 2014 and frankly

were excited to join the ranks, pleased to get

the internal acknowledgement within our

company (featured in our company magazine

and acknowledged by senior management)

and proud to have their professionalism

recognised. Four more of our team sat the

exam in September and will shortly complete

their assignments and become CCE’s. As

unemployment rates reach their highest levels

in more than a decade the CCE designation

is a way to show your value to your current

employer and stand out from the crowd with

prospective employers.

Later this year we will call for nominations

for the Credit Team of the Year. An award

sponsored and strongly supported by Veda.

Wouldn’t you like to add your name to the

list of past winners and join household names

BOC, 20th Century Fox, Electrolux, Coates Hire,

CHEP Australia, PFD Food Services and Reece

Plumbing as holders of the award. Do not under

estimate the calibre of companies which have

nominated for this award nor the prestige both

within their organisations and in the public

domain that finalists and winners have gained.

You should start on this journey now by giving

our CEO Nick or myself a call.

Our biggest event this year will undoubtedly

be the AICM National Conference in Sydney

in October. Make sure you include it in your

budget now for yourself if you are a manager

and if you are not the Manager in your work

place then have your Manager include it as

recognition and reward for your efforts and

results this year. The conference does not come

to Sydney often and this year’s conference

promises to be like the Sydney Olympic

Games – the best ever. The programme is

well underway with speakers from ASIC and

the ATO already confirmed . There has been

an overwhelming response from sponsors

and exhibitors indicating that this will be

another fantastic conference. Super Early Bird

Registration is already open, so I look forward

to seeing you in October.

Please take the time to read the various

articles and sections in this magazine. Of

particular interest is the “AICM – Can We Help”

section which contains a number of answers

to matters affecting Credit Managers sourced

from the experts in these area’s. Frankly this

is a free hit to obtain respected advice in any

area of Credit Management including legal

and insolvency advice and if you are unsure of

your position or the action to take you would

be a mug not to write in and obtain real and

formal advice, to say nothing of helping and

advancing fellow credit professionals. To help

you the advice will be returned to you before

the magazine goes to print.

All Division calendars are set for the year and

available on the website along with immediate

events featuring in the always popular “Around

the States” section of the magazine.

The Swans are training hard on the track,

Max is back from Fiji rested and firing as he

aims to reduce DSO by 10 days this year, and

we on the Board, your Division Councils and

the AICM office are aiming to make this our

best year ever.

Participate in some way to the advancement

of your profession and I hope to see you at an

AICM event soon as you support the Institute

which supports you.

– Grant Morris

[email protected]

I recently joined Twitter #GrantLMorris – if

you’re not an OF join me there or on LinkedIn

mailto:[email protected]

Credit Management


Following receiving a Royal Charter, as of 1 January

2015 the UK equivalent of the AICM, the Institute

of Credit Management will be now known as the

Chartered Institute of Credit Management. This is

a significant milestone in the history of the 75 year

old institution and a clear sign of the importance of

Credit Management in todays business world.

Philip King, Chief Executive of the CICM, says

that credit managers are responsible for managing

more than £4 trillion of trade debt each year, and

their professional status and national recognition is

growing: “The Royal Charter affirms the quality and

integrity of our Institute, our qualifications, and our

members, and the critical role they play in keeping

the cash flowing,” he says.

Already Europe’s largest association for

the credit management profession, the ICM’s

elevation to Chartered status was supported by

the Department for Business, Innovation and

Skills (BIS) with whom the Institute works closely

on supporting business growth and for whom it

manages the Prompt Payment Code (PPC). Other

supporters included the Insolvency Service, the

Institute of Chartered Accountants in England

and Wales (ICAEW), and the Credit Services

Association (CSA).

As the Chartered Institute of Credit

Management, the organisation will continue

to promote the role of credit management

and collections, and champion professional

credit managers at every stage of their careers

in supporting business growth across the

whole spectrum of industries from the largest

manufacturers to the smallest service providers in

the UK and internationally.

Royal Charters, Philip says, are granted rarely,

and as such this is arguably the most significant

achievement in the Institute’s 75-year history: “We

had to demonstrate the tangible support that our

members deliver, and the high level of qualification

they are expected to achieve,” he says. u

Credit Management given the Royal Seal of Approval

Credit Management


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In January 2015 Ralf Daute, editor

of the German Credit Management

Association magazine called “Der

CreditManager” was escaping the

near zero temperatures in Germany

and visiting family in Australia. During

his stay he visited the AICM national

offices. It was interesting to compare

the credit industry and challenges

in the two countries and below is a

summary of Ralf’s point of view of

Credit Management in Germany

Situation and challenges of credit management in GermanyOur association, the Bundesverband

Credit Management (BvCM) makes

smalls steps towards our objective

to establish credit management as

a natural element of the business

landscape. But, even though bigger

companies use the advantages of

a structured credit management

process, in SMEs it is not as much

as it should be regarded as an easy

way to optimise the working capital.

This effect is fostered by the strong

German economy which leads to a (in

general) good payment behavior with

only few payment defaults, e.g. today

the German credit agency Bürgel

reported for 2014 a historical low rate

of insolvencies (a five year decline).

24,549 companies went bankrupt; this

means a decline of 8.2% compared

to the year before. Obviously this

development is a consequence of well

performing credit management which

companies implemented in the years

after the world financial crisis. But in

fact, it turns out (at least partly), the

better economical situation make

companies think of downsising their

credit management departments.

Economical situationAs I pointed out before, the German

economy is very strong and leads

Europe. German banks are starting

to punish customers with fees if they

leave their money on their accounts

– there’s too much money around.

But southern European countries,

including France, are facing a lot

of challenges. And right now the

discussion about Greece leaving the

Euro Zone (“Grexit”) is becoming

more intense. In addition, the rising

economies of Eastern Europe are

shaken up also, a big dark shadow

looms in Russia and its resource

driven economy, which is badly

affected by the oil price decline. So,

to put it in a nutshell, the Germany

economy shines still brightly but there

are growing concerns how sustainable

the situation is.

Payment behaviorOur Credit Management Index (CMI),

a monthly survey, shows a positive

development in most areas. Disputed

receivables are declining; the number

of insolvencies is expected to decline

further. DSOs are continuously

improving. u

Ralf Daute, Editor at Der CreditManager

Credit Management in Germany

Credit Management


Plan intelligent actionsAdapt your actions to the size of

your outstanding invoices. You

should not spend too much of your

time on chasing the small sums: an

email is a quick and cost effective

way to remind your customer of his

outstanding invoice(s). For a larger

amount you could consider sending

a letter, this still does not take up

much of your time is more formal

and appropriate for the situation. If

the sum of your outstanding invoices

exceeds a certain point it might be

wise to call your customer directly

instead of mailing or emailing them.

Investing your time to engage into a

personal conversation will pay off in

this case.

Plan focused/targeted actionsSegment your customers into

groups based on a combination of

information and criteria:

z Internal information (historic

payment behaviour and complied

appointments)

z External information (credit

information)

z Risk level (based on history,

industry, country)

z Divide your clients into profiles

and adapt your dunning strategy

to this.

Plan actions at the right level Make sure to match a collector of

the right level to the action that is

required and the person that needs

to be contacted. A combination of

the invoice sum and clients profile

helps to determine if a junior or senior

collector should be responsible for

collecting it.

Use pro-active actions Consider planning an action before

the due date of your invoices. This

may seem to cost you extra care but

could save you time in the long run.

It is an opportunity to detect possible

questions or queries about a delivery

or invoice that might otherwise cause

a delay of the payment.

Segmenting and profiling your

customers and combining this with

a risk assessment can save you time

and money. A regular checkup of

your processes will prevent you from

investing your efforts in the wrong

things. If you focus on taking the right

action for the right person at the right

time you might find yourself doing

nothing more often. u

Contact or more information?Contact us via: [email protected], or follow @OnGuardGroup on Twitter to stay up to date.

to improve your creditmanagement by not taking action

5 steps

By Arnoud Visser, OnGuard

Arnoud Visser

Current circumstances in the business

in which we operate ask for constant

improvement in both efficiency and

effectiveness. So with low risk: no

action – and if the risk goes up? Take

the right action by the right person

at the right time!

Start today! Consider not taking

action more often and achieve more

by dividing the energy and resources

that you are investing into your credit

management smarter:

Assess your current approachHow long ago did you implement

your current dunning strategy? Is it

still up-to-date? Taking a closer look

at your processes and procedures

regularly is bound to yield results.

When are your actions planned, how

many actions are planned? Are they

planned at the right time and is the

frequency and amount effective?

“Adapt your actions to the size of your outstanding invoices. You should not spend too much of your time on chasing the small sums...”


Credit Management

While most companies would hope

to never require the services of a

debt collector, a business facing

financial difficulty is unfortunately

a reality for many. There are various

reasons why a business will fall into

debt. Recently, continuing uncertain

economic conditions have been

a major contributor, resulting in

some negative impacts on business.

While the recent cut in interest rates

means money is expected to begin

to flow more fluidly, factors such as

fear over job security and reduced

government benefits for families

are currently contributing to low

turnover for companies. When a

business falls into debt, creditors

will generally deal directly with

debtors to resolve any outstanding

debts. Sometimes, however, they

may engage the services of a debt

collection agency to recover their

money. The below provides a simple

guide for businesses who may be

dealing with debt collectors for the

first time, or have queries about

some of their processes.

RegulationIn July 2014 the Australian

Competition and Consumer

Commission (ACCC) and the

Australian Securities and Investments

Commission (ASIC) updated their

industry guidance, Debt Collection

Guideline for Collectors and Creditors

to reflect significant changes to the

law, such as the introduction of the

Australian Consumer Law in 2011 and

changes to privacy laws in Australia

in March 2014.

Debt Collectors:Custodian of your company’s purse strings and goodwill

By Phylline Comia AIPA MICM

Phylline Comia AIPA MICM

When a business falls into debt, creditors will generally deal directly with debtors to resolve any outstanding debts.


Credit Management


Whilst this Guideline focuses

on the responsibilities of creditors

and collectors, both the ACCC and

ASIC recognise that debtors have

responsibilities too. Debtors are legally

responsible for paying the debts they

legitimately owe.

What should you consider when engaging a debt collector?Remember, you will be held liable

for your agent’s actions. Accordingly

it is of the utmost importance that

you only engage the services of

a reputable licensed professional

agency. Business to Business (B2B)

debts require a more sophisticated set

of competencies to those required to

recover Consumer Debts. You need

to be sure to engage a company that

is quality accredited and specialises

in the fields you require. Choose

a company that understands your

specific needs and can provide

customised solutions whilst

maintaining an environment of strict

compliance with all legislation.

What should you expect from your debt collector?Professional debt collectors are

obliged to be fair and ethical in

their approach to each debt. If you

couple this with the fact you want

debts collected without alienating

your entire client base, you should

expect a debt collector to strike up a

professional working relationship with

the debtor.

The debtor is entitled, and it is

a legitimate strategy, to negotiate a

repayment arrangement their business

can afford. This will ensure a realistic

approach is adopted and the debt

is cleared as soon as is reasonable,

allowing all parties to move on as

soon as possible. Setting clearly

defined parameters and boundaries

for your debt collectors’ authority to

negotiate on your behalf will expedite

a speedy and solid arrangement.

Where a repayment plan has been

renegotiated with your debtor, the

debt collector will confirm the terms

of the agreed arrangement in writing.

This will minimise any ambiguities or

misunderstandings and will give your

debtor the opportunity to contact

the collection agency in case they

disagree or are unclear about any

aspect of the agreement.

Taking legal action Whilst the guide is mainly concerned

with non-court debt recovery process

and collection activities before a court

action is commenced, or after a court

judgement, you have the option to

take legal action to collect a debt,

conduct legal repossession activities,

or enforce judgement through a court

process. Once you have a judgment

you can use the legal process to bring

even the most recalcitrant debtor to

their sense.

If a debt collector is unable to

negotiate a satisfactory repayment

arrangement with your debtor, you

will be asked to authorise proceeding

with legal action. Most civil debt

matters are quickly resolved. Upon

being served with a summons, the

majority of debtors simply pay the

debt and the court scale legal cost

being claimed. Those with cash flow

problems will negotiate a satisfactory

repayment arrangement. Very few,

less than 2%, will file a defence.

Professional debt collection agents

employ highly skilled solicitors

You need to be sure to engage a company that is quality accredited and specialises in the fields you require.

ON AVERAGE 25%OF COMPANIES FAIL DUE TO UNPAID DEBTS

Source: Coface in Australia

Credit Management


experienced in guiding proceedings to

a favourable judgment in the shortest

possible time. Debt collectors will not

seek payment from a creditor until the

debt is collected.

What a debt collector will expect from youContact by debt collectors should

only be for a reasonable purpose.

When approached by a debt collector,

your debtors need to be cooperative.

They can expect to be treated in a

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You should not ask debt collectors to threaten, harass or attempt to intimidate your debtors. Debtors have rights and those rights have provisions for penalties for contraventions...

professional, courteous and ethical

manner. You should not ask debt

collectors to threaten, harass or

attempt to intimidate your debtors.

Debtors have rights and those rights

have provisions for penalties for

contraventions of the Commonwealth

consumer protection laws to be

imposed upon both you and your

debt collector.

In summary, debt collection does

not have to be a stressful necessity

in your business. Debt collectors

can be a very useful ally to help you

regain and maintain control over your

debtors’ ledgers and cash flow, and

can help you grow by giving you more

time to focus on your core business

functions.

Don’t let debt capsize your enterprise – take the lead and take control so you can get back to doing what you do best!

For more information, you can visit

the ACCC website at:

https://www.accc.gov.au/

publications/debt-collection-

guideline-for-collectors-creditors.

http://www.accc.gov.au/consumers/

debt-debt-collection u

*Phylline Comia AIPA MICM is a Compliance Officer at Austral Mercantile Collections Pty Ltd.

https://www.accc.gov.au/publications/debt-collection-guideline-for-collectors-creditors



http://www.accc.gov.au/consumers/debt-debt-collection

http://www.accc.gov.au/consumers/debt-debt-collection


Opinion

W ith uncertainty remaining for many

sectors of the Australian economy,

credit providers face a continuing challenge

in assessing the future viability of business

credit applicants, particularly in the SME

and corporate mid-market. Through Veda

Corporate Ratings, a division of data

intelligence company Veda, credit providers

can access corporate ratings and predictive

analytics from an integrated data set, to

identify early warning signs of companies

heading into troubled waters.

Informed Credit DecisionsCredit providers have dealt with a fair share

of blows in recent years with shaky economic

conditions making it challenging to see the

early warning signs of collapse. The number of

companies ASIC reported as having entered

insolvency in Australia over the past two years

was the highest in recorded history. Many

providers have been caught off guard, with

the collapse of the likes of Reed, Cosmopolitan

Construction, Kell & Rigby, Swan Cleaning and

Hastie Group, resulting in a series of reviews

and government inquiries around insolvency.

In this environment, and particularly in

the corporate mid-market and SME sector,

it’s critical for credit providers to make

better informed risk assessments and credit

decisions. Increasingly, credit providers

are seeking forward-looking analysis. Veda

Corporate Ratings also acknowledges

that credit providers have an obligation to

know who they’re dealing with, but that it’s

often difficult to wade through the sea of

information to obtain the real intelligence and

insight on the underlying fundamentals of a

company.

With more than 25 years’ experience,

Veda Corporate Ratings is a credit ratings

agency specialising in the Australian SME

and corporate mid-market. The business

provides an independent opinion of an

entity’s continued future viability and financial

capacity, making it an invaluable measure

used to demonstrate the financial strength of

an organisation to the market.

Gaining insight into SMEsGlobal ratings agencies have an established

reputation in providing industry commentary,

sector benchmarking and credit ratings

for large corporates. Credit providers often

supplement this information with other

domestic industry sources to provide industry

benchmarking and market analysis in their

local market.

The merits of using ratings to assess an

entity’s future viability and capacity are clear,

however, the penetration of global agencies

in the Australian corporate mid-market is

limited. Veda Corporate Ratings’ industry

commentary and sector benchmarking in

Australia goes beyond a sample of large,

publicly listed entities to ensure market

insights adequately reflect the underlying

fundamentals of SMEs.

Forward-looking intelligence offers insights for credit risk mitigation

By Moses SamahaGeneral Manager – Commercial Risk


Further, its breadth of data and coverage

of private financials provides thorough

intelligence and insight into a sector of the

market, and the market as a whole.

Veda Corporate Ratings offers credit

providers a data set on the SME and

corporate mid-market that is unrivalled.

Credit providers can use Veda Corporate

Ratings to cost-effectively build a clear

picture of the likely future viability of a

credit applicant.

Early warning signs Ratings, provided by Veda Corporate Ratings,

identified the Hastie Group, Cosmopolitan

Construction, Kell & Rigby, Walton

Construction and Swan Cleaning as being

‘highly vulnerable’ years prior to their collapse.

Each of these entities were exhibiting

early warning signs, ranging from margin

erosion, operating losses, unsustainable

growth, deteriorating cash flow, poor debt

serviceability, depleted working capital,

insufficient capital, overly leveraged, impaired

assets, client concentration, and creditor,

counterparty and segment exposure, all of

which can be signs of future vulnerability.

Veda ratings accurately identified these

warning signs prior to their collapse.

Therein lies the power of Veda Corporate

Ratings’ predictive analytics for Australian

credit providers servicing the SME and

corporate mid-market. Accessing ratings

intelligence and insight on the underlying

fundamentals of a company makes for

informed credit decisioning, supporting

targeted growth across good quality credits

while minimising loss and exposure to higher

risk credits.

Sector insightsRatings are provided by Veda Corporate

Ratings across all industry sectors, with a

specialisation in the corporate and broader

business market. Veda Corporate Ratings’

analysis of the corporate ratings and credit

quality of the SME and mid-market segments

shows a year-on-year improvement in 2013,

however this has not been consistent across

all sectors.

The six month results from December 2012

to June 2013 showed a slight improvement

in the Corporate Ratings Index (CRI), with

35.7% of entities having an improved rating

over that time. The CRI is an appraisal of the

corporate credit quality of all mid-market and

SMEs as assessed by Veda Corporate Ratings.

In light of the release of financial statements,

figures are available on a six monthly basis.

Veda’s Commercial Credit Demand Index has

shown overall business credit growth increase

by +0.9%, a slight rise from -0.7% in the

September quarter, supported by an increase

in business loans of +5.2%. The Construction

industry, despite a high level of defaults relative

to other sectors, generally improved due to

increases in profitability and liquidity, together

with lower gearing levels. Insolvencies in this

sector originated from those entities that had

been assessed by Veda Corporate Ratings

as having a very poor credit quality, with

classifications of ‘vulnerable’ and ‘credit watch’.

Mining, manufacturing and retail have

deteriorated due to a variety of factors such

as lower margins, higher gearing, poorer

serviceability metrics and lower liquidity levels.

Despite sectoral differences emanating

from Australia’s multi-speed economy, overall

performance will be influenced by global

markets. Veda Corporate Ratings holds a

stable credit outlook for Australian mid-market

corporates and SMEs on the basis that global

risk events do not derail the recovery process.

About Veda Corporate RatingsVeda Corporate Ratings has a deep penetration

and wide coverage of the Australian corporate

mid-market, SME market, private sector

procurement, and is a leading advisor to all levels

of Government. Customers benefit from invaluable

sector intelligence and automated efficiencies

through the integration of data sources and

predictive analytics. Veda Corporate Ratings’

database contains more than 75,000 financial

years’ worth of private entity information, and

interfaces with Veda’s credit bureau which holds

information on 2.5 million registered companies,

2.4 million registered business names and 16.4

million individuals.

Legal


SummaryThe Supreme Court of Victoria on 17

December 2014 delivered judgment

in Lewis and Templeton as liquidators

of Warehouse Sales Pty Limited (in

Liquidation) (“Warehouse Sales”)

[2014] VSC 644 which is relevant

to businesses which sell goods on

retention of title terms.

The Court found:

z A transfer of goods by a debtor

to a related entity of the debtor

was a transfer free of the retention

of title security interest of certain

suppliers over the goods.

z The supplier’s retention of title

security interests over stock has

priority over a claim of lay by sale

customers of the debtor.

z All other sales by a debtor, even

part paid sales, were free of any

retention of title security interest

of a supplier.

In light of this judgment, trade

suppliers may better protect their

retention of title rights over stock sold

on credit terms by having a provision

in their terms of trade prohibiting sales

by their customers to related parties.

BackgroundWarehouse Sales and WHS2 Pty Lim-

ited (in Liquidation) (“WHS2”) carried

on the business of selling white and

brown goods obtained from suppliers

through a number of stores in Victoria.

WHS2 is a related entity of Warehouse

Sales and operated a store in Wodonga.

The liquidators brought

proceedings seeking judicial advice

as to certain items of property held

by Warehouse Sales and WHS2. A

number of major suppliers were joined

to the proceedings by the liquidators

effectively as contradictors. The

Department of Consumer Affairs

Victoria also appeared.

Matters in IssueThe proceedings involved the

following issues to be determined:

1. Was the sale of goods by

Warehouse Sales to its subsidiary

entity WHS2, a sale free of the


of the supplier of goods to

Warehouse Sales?

2. Were lay-by customers of

Warehouse Sales able to complete

sales and take goods free of any

retention of title security interest of

the supplier to Warehouse Sales?

3. Are customers of Warehouse Sales

who had part paid for goods (not on

lay-by terms) and had not collected

their goods, able to complete the

sale and take the goods free of any

retention of title security interest by

the supplier to Warehouse Sales?

PPSA Retention of Title Precedent Case – Debtor transfers to Related Entities and Lay-by Sales

By Daniel Turk*

... trade suppliers may better protect their retention of title rights ... by having a provision in their terms of trade prohibiting sales by their customers to related parties.

Daniel Turk

Legal


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Transfer of goods to the subsidiary WHS2Initially the liquidator’s conducted the

liquidation on the basis that goods

held by WHS2 were the property of

Warehouse Sales. However on receipt

of further legal advice, the liquidators

came to the view that WHS2 may have

obtained the goods from Warehouse

Sales free of any security interest of

suppliers to Warehouse Sales.

Under the Personal Property

Securities Act 2009 property

transferred will be free of any security

interest when it is a sale in the

ordinary course of business of the

seller (section 46); or the secured

party authorised the disposal of the

property giving rise to proceeds

(section 32).

His Honour Judge Sifris said the

critical question to be determined

was whether the sales by Warehouse

Sales to WHS2 were of the kind

comprising the ordinary course of

business of Warehouse Sales and

therefore specifically authorised by

the suppliers to Warehouse Sales.

The features of the dealings

between Warehouse Sales to WHS2

included:

z Both companies had the same two

directors.

z Warehouse Sales owned 80% of

shareholdings in WHS2.

z There was a running account

between Warehouse Sales and

WHS2 recording sales of goods

and a monthly statement was

issued to WHS2.

z Goods were sold to WHS2 at cost

value less rebates.

z WHS2 transferred cash amounts to

Warehouse Sales daily which was

noted in the running account.

z Goods at Wodonga were recorded

in the books as owned by WHS2.

z WHS2 owed Warehouse Sales

over $2m at the time of the

appointment of the liquidators.

Apart from one exception, the

court found the sale of goods by

Warehouse Sales to WHS2 was in

the ordinary course of business of

Warehouse Sales. The evidence was

that the business of Warehouse

Sales was not just selling to mum

and dad customers at its stores

but also through resellers such as

WHS2.

Legal


The court found the suppliers’

terms of trade with Warehouse Sales

expressly or impliedly authorised a

sale of goods of the kind conducted

by Warehouse Sales with WHS2.

The position for one of the

suppliers, Panasonic, was different

in that its terms of trade prohibited

sales by Warehouse Sales to a reseller.

Accordingly, Panasonic’s retention of

title interest remained in goods held

by WHS2 even though its goods sold

to Warehouse Sales were on-sold to

WHS2.

Lay-by salesThe court held that suppliers with


were entitled to stock the subject of

lay-by sales in priority to the lay-by

customer. The main basis for this

decision was because the lay-by sale

terms provided that ownership of

the goods remained with Warehouse

Sales until paid in full by the customer.

The lay-by customers had not paid for

the goods in full.

Part paid salesThe court found that customers, who

purchased goods that had not been

collected, even if part paid, could

complete the transaction and take

the goods free of any security interest

of a supplier. The court distinguished

normal sales from lay-by sales, as

there was no condition in normal sales

that title remained with Warehouse

Sales until paid in full.

It should be noted that further

proceeds paid by the customer to

complete the sale would form part of

the security interest of the supplier.

Also, if the customer did not complete

the sale then the supplier’s retention

of title claim applies.

Ramifications for trade credit suppliersThe following can be drawn from

this case:

1. Trade suppliers who sell on

retention of title terms may lose

their claim to stock when the

debtor transfers the stock to a

related entity. In this instance, the

suppliers’ claim will be limited to

any identifiable monies received

by the debtor under the sale.

2. Trade suppliers can better protect

their interest in stock by prohibiting

sales by their customers to related

entities in terms of trade.

3. Whether or not a suppliers

retention of title interest has

priority over a claim by a part

paid customer of the debtor

depends on the terms of the sale

agreement between the debtor

and customer. u

*Daniel Turk is Partner at Turks Legal. T: (02) 8257 5727, M: 0408 667 220, E: [email protected], www.turkslegal.com.au

80% OF COMPANIESARE FACING

LATE PAYMENTS,THIS CAUSES

25% OF BANKRUPTCIESSource: Coface in Australia

Trade suppliers who sell on retention of title terms may lose their claim to stock when the debtor transfers the stock to a related entity.


http://www.turkslegal.com.au

Legal


IntroductionStatutory demands are one of the

most effective legal recovery tools

available to trade creditors.

The consequences of not

complying with a statutory demand,

liquidation, could not be more serious.

Serving a statutory demand has

the effect of asserting significant

pressure which often results in full

payment of the outstanding debt.

There are, however, significant

consequences of improperly issuing

a statutory demand. For this reason,

it is important to be aware of the

circumstances where a statutory

demand is at risk of being set aside,

to ensure that they are only issued in

appropriate circumstances.

Genuine DisputeThe court will set aside a statutory

demand if there is a genuine dispute

or offsetting claim in respect of the

indebtedness.

The threshold test for a debtor to

apply to set aside a statutory demand

on this ground is fairly low.

It is not necessary for a debtor to

establish that they have a defence

which would succeed at trial. The

issue to be determined is whether

there is a “genuine dispute in respect

of the indebtedness”.

The courts have given the

following judicial guidance as to how

the term “genuine dispute” is to be

determined.

z “A plausible contention requiring

investigation.”1

z “A serious question to be tried.”2

z “... must establish that the dispute

is a bona fide and truly exists

in fact, and that the grounds

alleging the existence of the

dispute are real and are not

spurious, hypothetical, illusory or

misconceived.”3

While the above judicial

interpretations are useful, it is

important to bear in mind that the

concept is not a particularly difficult

one. At a practical level, there are two

considerations.

1. Is there a dispute?

2. If so, is the dispute genuine?

If a genuine dispute is established,

the court will make an order setting

the statutory demand aside. In these

circumstances, the court will almost

always award (substantial) costs

against the creditor who issued the

statutory demand.

At a practical level, it is important

that care is taken to confirm that there

are no genuine grounds for a dispute

prior to issuing a statutory demand.

If potential grounds for a dispute

exist, it is important that they are

brought to the attention of your

solicitor when you provide instructions

to issue the statutory demand. This

will allow your solicitor to provide

advice as to whether the alleged

dispute is likely to meet the threshold

requirement of “genuineness” and/

or give consideration to alternative

strategy options for pursuing effective

legal recovery action.

Partially disputed debtsIt may be possible to issue a statutory

demand if a debt has been partially

disputed. If a debt is partially

disputed, the court will only make an

order setting the statutory demand

aside if the undisputed portion of the

debt is less than $2,000.

Statutory demands – eliminating the riskBy Karl Hill*

Serving a statutory demand has the effect of asserting significant pressure which often results in full payment of the outstanding debt.

Karl Hill

Legal


The entitlement to issue a

statutory demand for the undisputed

portion of a debt was verified in the

decision of Commonwealth Bank of

Australia –v– Garuda Aviation Pty

Ltd4. In that case, the Commonwealth

Bank claimed an amount of

approximately $4.5 million from

Garuda. Garuda raised offsetting

claims and disputed a significant

portion of the debt. Notwithstanding,

even after those matters were

taken into account, a balance of

approximately $2 million remained

outstanding.

The court in this case verified that

the Commonwealth Bank’s actions

in issuing a statutory demand for the

undisputed portion of approximately

$2 million were both valid and

appropriate.

If a dispute or offsetting claim is

raised by a debtor, it is important to

consider whether it applies to the

entire debt, or only a portion. If the

dispute or offsetting claim only relates

to a portion, an appropriate strategy

option may be to issue a statutory

demand for the undisputed balance

of the debt. In these circumstances,

your rights in respect of the disputed

portion of the debt will remain

unaffected and separate legal

recovery action may still be pursued

at the appropriate time.

Abuse of processIt is an abuse of process to use

statutory demands for an improper

purpose. It has been held by the

courts that it is an improper purpose

to use statutory demands as a debt

recovery tool to coerce someone into

paying a disputed debt.

A statutory demand which has

been issued as an abuse of process,

will be liable to be set aside.

The abuse of process rule

reinforces the importance of

determining whether any grounds

for dispute exist prior to issuing a

statutory demand.

Technical defectsThere are significant consequences

associated with issuing a statutory

demand. In particular, when a debtor

company fails to comply with a

statutory demand, the onus of proof

is reversed. This means that on the

hearing of an application to wind up,

the debtor company will be presumed

to be insolvent unless it can prove

otherwise.

It is not, therefore, surprising

that the court is conscious to ensure

statutory demands are issued in

the proper form and in accordance

with the prescribed requirements

of the Corporations Act. If there is a

defect in the statutory demand which

may cause substantial injustice, the

statutory demand will be set aside.

The following is a series of

examples where statutory demands

have been set aside based upon

technical defects.

z The statutory demand outlined

a claim for a principal debt and

a claim for interest. The amount

of the claim for interest was not

specified and the source of the

interest was not particularised.5

z The debt was owed to two

creditors, but the demand

was only signed by one of the

creditors.6

z The statutory demand specified

one debt amount on page 1 and a

different debt amount on page 2.

The affidavit verifying the demand

did not effectively verify either of

the debt amounts.7

z The statutory demand was issued

in Australian Dollar amounts,

whereas the original debt was

quantified in a foreign currency.

The statutory demand did not

provide an explanation as to how

the Australian currency amount

was converted.8

Statutory demands are a very valuable

legal recovery tool, but only if they

are technically correct. If a statutory

demand is set aside because of a

technical defect, a costs order will

Legal


almost certainly be made against the

creditor who issued the demand.

ConclusionSecuring payment from a debtor is

often about creating pressure. Where

the debtor is a company, one of the

most effective ways to apply pressure

is through issuing a statutory demand.

While statutory demands can be

a very valuable tool for creditors, the

consequences of getting it wrong and

having a statutory demand set aside

can be significant.

Prior to issuing a statutory

demand, it is important to conduct

proper internal investigations to

ensure that no grounds for a dispute

exist. If a genuine dispute as to debt

exists, the statutory demand will be

set aside.

If a debt has been partially

disputed, it may still be possible to

issue a statutory demand. So long as

the undisputed portion of the debt

exceeds $2,000, creditors are still

within their rights to issue a statutory

demand for the undisputed portion

of the debt and pursue an alternative

form of legal action (such as issuing

proceedings) to recover the disputed

balance.

Finally, it is important to remember

that there can be significant

consequences if there is a technical

defect in the form or content of a

statutory demand and/or affidavit in

support. This risk is best managed by

ensuring that the person entrusted

with preparing and issuing statutory

demands on your behalf is an

appropriately qualified solicitor

specialising in insolvency law.

The statutory demand process

can be a very valuable tool for trade

creditors in pursuing their legal rights

to secure payment of outstanding

debts. Ensuring that statutory

demands are issued appropriately

limits the risk of an adverse costs

order, while allowing trade creditors

to effectively adopt strategies which

maximise their net return. u

*Karl Hill is Managing Director of Results Legal. Ph: 07 3234 3200www.resultslegal.com.au

FOOTNOTES

1. Eyota Pty Ltd –v- Hanave Pty Ltd [1994] 12 ACSR 785

2. Eyota Pty Ltd –v- Hanave Pty Ltd [1994] 12 ACSR 785

3. Spencer Constructions Pty Ltd –v- G & M Aldridge Pty Ltd [1997] 76 FCR 452 at 464

4. [2013] WASCA 61

5. Topfelt Pty Ltd –v- State Bank of New South Wales Ltd [1993] 120 ALR 155

6. Gone Farming Pty Ltd –v- Long BC200105594

7. Sewmail (Aust) Pty Ltd –v- Booby Traps Pty Ltd [1997] 23 ACSR 339

8. MEC Import Sales Pty Ltd –v- Iozzelli SRL [1998] 29 ACSR 229

AustrAliA wide

M a r k e t l e a d i n g l e g a l

Trade CrediT SpecialiStS

australia Wide

legal Recovery

Disputed Debts

privacy act advice

credit agreements

ppSa claims & advice

preference Defences

resultslegal.com.au 1300 757 534 legal recovery coMMercial disputes insolvency law

Legal


What can be more frustrating than

to register a security interest on the

PPSR but still lose out?

In the case of Doka Formwork

Pty Ltd, the loss was in the region

of $1 million.

As credit professionals we need

to understand how this happened

and how to avoid the same fate.

For those who want a very detailed

explanation, we recommend you read

the full judgement: Relux Commercial

Pty Ltd (In liquidation) v Doka

Formwork Pty Ltd.

In this article we will give a

simplified overview of the case and

focus on the commercial implications

of the judgement. The background

facts are as follows:

z Doka is in the business of leasing

formwork equipment and had an

ongoing trading relationship with

Relux.

z Most of the equipment in question

was delivered into Relux’s

possession before 1 January 2014.

z On 20 February 2014 Doka

registered a security interest in

its goods on the PPSR.

z There were two subsequent

deliveries of equipment on 26

February 2014 and 31 March 2014.

z On 7 April 2014 Relux went into

administration and 16 May 2014

was placed in liquidation.

Dates are critically important As knowledge of the PPSA grows,

most businesses are becoming aware

of PMSI’s and the super priority that

a supplier of goods may obtain if it

registers within specified time limits.

But this case had nothing to do with

PMSIs or even the PPSA itself.

Doka was tripped up by the

By Kim Powell*

As knowledge of the PPSA grows, most businesses are becoming aware of PMSI’s and the super priority that a supplier of goods may obtain if it registers within specified time limits.

Kim Powell

The importance of timing

Corporations Act 2001, which has

been amended to harmonise with

the new Act. The abridged version

of section 588FL is as follows:

z if a secured creditor fails to

register its interest on the PPSR

within 20 business days of the

security agreement being created,

and

z the debtor company (grantor)

has administrators or liquidators

appointed, or enters into a DOCA

within six months of registration

on the PPSR, then

z the security interest will vest in

the insolvent company and the

secured creditor loses its goods.

Legal


The appointment of administrators on 7 April 2014

was clearly within six months of the date on which

Doka registered its security interest, so it was at risk.

The cut-off date in the Doka case was 21 January 2014,

being 20 business days before the registration of its

security interest on 20 February 2014.

Accordingly Doka lost all equipment provided prior

to 21 January 2014 – which represented the bulk of

equipment supplied. However, it was protected for the

equipment delivered on 26 February and 31 March 2014.

Caught out by something the law never intended This is an unintended consequence of the law and even

the judgement notes that this is a “seemingly draconian

result”, with Doka bearing the consequences.

When the PPSA first came into effect it was

accompanied by an explanatory memorandum that

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Legal

explained the thinking behind the

provisions of the Act and which

included comment on the Corporations

Act amendment. The intent of the

amendment was to prevent companies

with knowledge of actual or impending

insolvency from granting security over

assets to friendly parties.

It was never intended to catch

companies like Doka, but the law is

very clear and there is no room for

discretion. Even if we feel the law may

be unfair, we need to accept it for

what it is and take appropriate steps

to protect our businesses.

While every business is unique and

circumstances will differ, there are

three broad courses of action:

z Choose to take the ‘six month

risk’, but register everything on

the PPSR as soon as possible so

the risk is contained and the clock

starts ticking. Do not wait until you

have concerns about the financial

stability of a customer.

z If you have a single or primary

transaction, such as in the case

of Doka, you can apply to the

Court under section 588FM of the

Corporations Act to have a later

time fixed for registration so that

you are no longer at risk. This is of

course expensive and there is no

certainty that the Court will allow

a later date to be fixed, particularly

if it may prejudice the rights of

other creditors.

z For businesses with an ongoing

trading relationship, such as

suppliers of goods with retention

of title, there is a third alternative.

This is to update and re-issue

PPS compliant terms of trade as

a new security agreement to all

customers and make sure that

registration is completed within

20 business days. You will not be

protected for past supplies but

the future will be secure.

If you believe your business is at risk

and would like to discuss options for

protecting your interest in goods or

equipment supplied, please get in

touch.

Timing is everything. Make sure you

understand the cut-off dates for

goods registered on the PPSR. u

Note: Doka was not a member of the AICM or a client of EDX at the time of this decision.

*Kim Powell is co-founder of EDX, a national firm specialising in PPS registration and consulting. EDX has its roots in New Zealand where similar legislation was enacted in 2002. In his earlier career, Kim has been an insolvency practitioner, headed the commercial credit recovery division of a major bank, as well as a period as a business banker advancing funds on a secured basis. This background made the PPSA a natural area of interest. Kim moved to Australia in 2010 to lead EDX’s entry in to the local market and is based in Melbourne Contact Kim: [email protected] or phone 0410 475 100.

To discuss your registration policy or any other PPS matter, call head office on: T: (03) 9866 4559, E:[email protected]

We will arrange for one of our consultants to contact you for an obligation free discussion about your business.

DISCLAIMER: This article is provided for general guidance only and should not be construed as legal or professional advice. In particular, it should be noted that the Personal Property Securities Act 2009 (Cth) is relatively new law in Australia and as such has produced little case law precedent. The application of the Act will be subject to interpretation in the fullness of time and may well supersede or contradict the observations made herein. To the maximum extent permissible by law EDX Australia Pty Ltd, EDX Software Ltd and their respective officers, employees and agents, disclaim all liability in respect of the content to any reader or anyone else who comes to learn of its content. No person is entitled to rely upon or act on any comments made, but instead should seek appropriately qualified opinion prior to taking or refraining from taking any action.

Even if we feel the law may be unfair, we need to accept it for what it is and take appropriate steps to protect our businesses.

Australia’s tradewas worth nearly

$670 billion in 2013-2014

Source: Coface in Australia

aicm Can We Help?


AICM receives questions from Credit Managers that it puts to a panel of lawyer insolvency experts and credit professionals to answer. The brief is not only to answer the question but to look into

the root cause of the problem and contribute strategic thought.

All articles contain general information only. They are not legal advice. You should seek your own legal advice if faced with a similar situation.

Legal fees incurred by Insolvency ProfessionalsQuestionHardly a day goes by without receiving notification of the

appointment of an Administrator, Liquidator or Receiver and

Manager (ALRM) and then the reports flow through. I notice the

reports always include a not insubstantial amount of fees paid

to solicitors and wonder why this is so. Often the legal fees are

equal to the ALRM’s fees. This is a substantial drain on funds and

reduces or eliminates dividends to creditors. Why do ALRM’s find

the need to seek such legal advice? Are they not knowledgeable

in the handling of the appointments? Why do they use them to

submit initial claims for alleged preferential payments as this

would seem to double the cost ie the ALRM reviews the matter

and then the Law Firm does the same? I can understand why they

might be used to pursue payment by why doesn’t the ALRM make

the initial claim? How do they select the Law Firm? Are there any

commissions paid? Is this required to be reported? Why don’t they

negotiate reductions in fees especially for the volumes of business

they pass to them? I know the firms we use to assist us with

collection action are very competitive and commercial.

- National Credit Manager Sydney MICM CCE

Response 1ALRMs have the right to obtain legal advice, in the same manner as they may engage other services such as debt collection agencies, real estate agents and auctioneers; to assist with the efficient operation of an insolvency administration. Whether an ALRM chooses to use the services of a solicitor or not, and at what time those services are engaged is a matter of professional judgement for the ALRM and would be dependent on the particular circumstances of the administration.

ARITA’s Code of Professional Practice (“Code”) provides guidance on the use of legal advisors and the incurring of disbursements (i.e. non remuneration expenses).

Disbursements may only be claimed if they were necessary and properly incurred (Code clause 14.10). Legal fees are a disbursement in an insolvency administration.

In incurring a disbursement, an ALRM must use their commercial judgment, adopting the perspective of, and acting with the same care as, a reasonable person exercising care and skill would act in incurring expenses on their own behalf.

An ALRM may engage a solicitor without creditor approval, but only after exercising proper commercial consideration.

An ALRM should consider issues of: z expertise; z quality; z timeliness; and z reasonable and appropriate cost.

ALRMs must assess each engagement of a professional service provider in terms of the interest of creditors and their fiduciary responsibilities. Unless the disbursement is insignificant, the ALRM should document the decision making process, identifying why the work was necessary and why the particular firm or professional was engaged. While the approval of creditors is not required, creditors are entitled to be informed of

and to understand the decision process if the issue is raised.Before authorising payment of disbursements, the ALRM

must ensure that: z the task has been properly performed; and z the quantum of the professional service fee is as agreed or is

reasonable. (Code clause 14.10.3A)So while the Code does not require an ALRM to negotiate reductions in fees, it does require the ALRM to act as a reasonable person incurring an expense on their own behalf and review the bill to ensure that it is as agreed and reasonable.

In respect of commissions, the Code specifically provides that an ALRM must not accept any referral that contains, or is conditional upon:

z the giving or receiving of referral commissions, inducements or benefits;

z the giving or receiving of spotter’s fees; z the giving or receiving of recurring commissions; z understandings or requirements that work in the

administration will be given to the referrer; or z any other such arrangements that restrict the proper exercise

of the ALRM’s judgement and duties. (Code clause 6.6).A copy of the Code is available on the ARITA website www.arita.com.au.

- ARITA (Australian Restructuring Insolvency & Turnaround Association)

Response 2Each insolvency administration brings different issues. Usually the insolvent company would have been party to many contracts that require a review by lawyers to advise on the company’s rights. Further, the PPSA has raised many new issues in its infancy which requires external administrators to seek legal assistance. The other matters which lawyers are often engaged include:

z preparing documents of sale z examining voidable transactions z enforcement of claims (eg debtors) z assisting in assessing creditor claims (which must be

assessed in a quasi-judicial basis) z drafting Deeds of Company Arrangement z responding to correspondence from solicitors for creditors

It is not the case that insolvency administrators do not know their job, it is more the case that each job involves many legal issues that may impact on the return to creditors – usually insolvency practitioners select lawyers who are experts in insolvency who they know provide good advice and assistance. If there is some association as between an insolvency practitioner and the lawyer which is relevant to how the insolvency practitioner was appointed, that needs to be disclosed in a declaration of relevant relationships and indemnities completed by the insolvency administrator at the commencement of an appointment.

Lawyers are not able to receive commissions – the methods of charge are regulated under the Legal Profession Act. It is often the case that insolvency practitioners (who are themselves often caught with limited funds) request their lawyers to undertake work at a discount for the benefit of the insolvent estate.

- Joseph Scarcella, Partner at Ashurst – Australia

http://www.arita.com.au

aicm Can We Help?


Caveat PriorityScenario

Our Customer, BMS Pty Ltd, fell into arrears. We reviewed our

paperwork and noted we had personal guarantees from “X”

and “Y” – the two owners/shareholders of BMS. We undertook

a real property search and identified a dwelling owned by X &

Y. The search showed the property is subject to a mortgage in

favour of a bank and a caveat to “Z” – a well known supplier

in our industry. We then also lodged a caveat over X & Y’s

property.

My question is one of priority with respect to the caveats.

The owners are actively marketing the property and are likely

to easily clear their debt under the bank’s mortgage. It is not

expected they will be able to clear both of the debts to “Z”

and us.

Who stands next in line after the bank and why?

The caveat position is as follows:

Caveator Date Caveat Lodged Date of Guarantee

Z 1st July 2014 15th May 2013

“Us” ie poor hard

done by supplier

1st August 2014 10th April 2007


ResponseYour question raises a good range of issues common to many

credit managers across all industries. It is not unusual for

Terms and Conditions of Trade and/or Guarantees to contain a

Charging Clause in an attempt to obtain security for an account.

Charging Clause

The starting point is to ensure that the Guarantee contains an

effective Charging Clause. Typically, a Charging Clause will

provide the creditor (“chargee”) with security over the real

property (land) of the guarantor (“chargor”) in the form of an

equitable charge. In granting a charge, an “equitable interest in

land” is being created in favour of the creditor.

Depending on wording, the charge may be wide enough

to charge all personal property (chattel) assets as well as real

property (land) assets. That would require a Personal Property

Securities Registration. We will presume for this account that

the charge only relates to real property (land).

Caveats

How do caveats interact with equitable interests? Importantly,

a caveat does not create an interest in real property (land)

but is simply a registration system for notifying the world that

an equitable interest exists. In this case, the caveats notify

that both You and supplier Z have equitable charges over the

property. You each have the same type of legal interest.

Priority

Upon sale, who is first entitled to the surplus? Generally, where

there are two competing interests of the same type, priority

in time of creation has precedence rather than priority of

registration. An equitable charge is actually created at the time

of signing the Credit Application or Guarantee and the caveat

can come much later. The date of the Guarantee in your favour

is earlier than supplier Z. It would appear that you would be

next in line after the bank to the surplus proceeds after sale.

However, as with all general rules there are exceptions. In cases

like this the question of ‘Postponing Conduct’ by the earlier

interest holder may affect the priority of the equitable interests

in the property.

Postponing Conduct

Postponing Conduct is some type of conduct or even

inaction, by the earlier in time interest holder that deprives

them of their priority over later created interests. There

is no settled list of the types of conduct that constitutes

Postponing Conduct and the Courts have made it clear that

it will always depend on the facts of each case. However,

it has been held in numerous cases that an excessive delay

in lodging a caveat or a failure to lodge a caveat at all, may

amount to Postponing Conduct.

There is insufficient information in the current facts to

determine whether there has been Postponing Conduct by

the creditor. The seven year delay in lodging a caveat may

be considered Postponing Conduct especially if supplier Z

can actually show they had relied upon there being no other

competing interests registered on the property when they

agreed to take their charge. Can you show that they did

somehow have notice of the earlier interest?

It is also important to note that the burden of proving

Postponing Conduct rests with the holder of the later equitable

charge, in this case, supplier Z. So it is for the later affected

party to prove that the earlier equitable interest should be

deferred because of Postponing Conduct. There is a lot of room

for tactical negotiation in this area.

What is best practice?

To avoid a ‘priority’ dispute, in a perfect world you would

register each and every charge when created, namely when

the Credit Application or Guarantee is signed. This is unlikely

to be cost effective or practical. To minimise your risk, you may

consider regularly monitoring:-

z your debtor accounts for any warning signs of financial

stress. If concerns arise you should effect your registration

against real property immediately;

z occasionally checking LTO title searches of the debtor/

guarantor’s real property to watch any registrations by other

creditors. If there are, you ought register your interest by a

caveat and give notice to the other caveators;

z do you ask in your Credit Application or Guarantee

documents if any other charge interests have been

granted? and

z can you see from the PPSR searches, the other industry

suppliers your client is dealing with and do you know if their

terms involve charging clauses?

Charging clauses are a unique “device” where an unsecured

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debt can become secured. They can lead to a safe, preference

free recovery. They can be used for commercial leverage if

the refusal to lift a caveat is stopping a sale. They can get

complicated if you find that the charge has attached typically

to a husband’s interest in land, where the property is jointly

owned by the husband and wife. Imagine the complexities

if the wife asserts a greater interest by virtue of her claims,

possibly in the Family Court, against the husband. Perversely

that position can actually give you reasonable leverage.

Provided the clauses are drafted and used correctly, they also

Most unfair preference claims settle, with the creditor able

to prove for the balance of its debt in the winding up of the

company. But what about the legal costs incurred in defending

the claim? Here, we have a creditor who has settled a claim for

$7,000 and incurred $10,000 in legal costs. Can the creditor

prove for $17,000 comprising the settlement amount and its legal

costs?

Unfortunately for the creditor, while it will likely be able to

prove for the $7,000 settlement amount, it will not be able to

prove for the $10,000 in legal costs it has incurred.

A creditor may prove for all ‘debts’ and ‘claims’ in the winding

up of a company, including ‘contingent’ and ‘future’ debts and

claims, as long as the circumstances giving rise to the debt or

claim occurred prior to the company entering administration or

liquidation.1

Where a creditor settles an unfair preference claim, the

creditor’s costs of defending the claim are not a ‘debt’ or

‘claim’ against the company because the creditor has no

right against the company to recover the costs. If a court

were to make a costs order in the creditor’s favour, the

creditor may be able to prove for the costs as long as the

proceeding began before the company entered administration

or liquidation.2 But that will not be the case in an unfair

preference claim, which can only be made by a liquidator after

the company has entered liquidation.

A creditor may have a clause in its contract with the company

to the effect that it may recover:

“… any costs and expenses incurred in recovering unpaid

amounts under this Agreement …”

Does this help? Unfortunately not. A liquidator considering

a proof of debt would likely reject the contention that the

costs of defending an unfair preference claim were ‘incurred

in recovering unpaid amounts’. Instead, they are better

characterised as costs incurred in retaining paid amounts or in

resolving the liquidator’s claim. More fundamentally, the costs

were still incurred after the company entered into liquidation.

The creditor might argue that the ‘circumstances giving rise’

to the costs occurred when the company made the insolvent

payment and that it had a ‘contingent’ claim from that date. But

the case law does not support that position and the better view

is that the creditor’s claim under the contract only arose once it

incurred the costs, after the company entered administration or

liquidation.

Cost of defending preference claim

QuestionWe have been pursued for a preference claim and the claim

has varied between $75,000 and $800,000. This has included

statements of claim etc. Although it is a nonsense claim it is

proving costly to defend so we have negotiated a settlement

of $7,000. To me that says it all, as regards the strength of

the Liquidator’s claim, however it is too time consuming to

defend further – we have already spent $10,000 in legal costs.

We will be adding the $7,000 preference payment to our

proof of debt.

My question is can I also include in our amended proof of

debt the $10,000 in costs paid defending this spurious claim

albeit the costs were incurred after the date of Liquidation?

Our agreed terms of trade with the company in liquidation

allow for recovery of all costs etc i.e. “… any costs and expenses

(including any commission payable to any commercial or

mercantile agents and legal costs) incurred by Us in recovering

any unpaid amounts under this Hire Agreement …”

– National Credit Manager Sydney MICM CCE

Response 1Unfair preference claims are among the most common disputes

arising in the insolvency context. On its face, the law is clear: if

an insolvent company pays an unsecured debt in the 6-month

period leading up to administration or liquidation, the liquidator

can claw back the payment.

However, this apparent simplicity hides a number of

uncertainties. What is a ‘unsecured debt’? Does it include

money paid pursuant to a Retention of Title clause, or a Bank

Guarantee? Does the so-called ‘running account’ defence

apply because the creditor supplied the company during the

6-month period? Can the liquidator prove that the company

was insolvent at the time of the payment? And, perhaps most

contentiously, can the creditor make out the defence that, at the

time the payment was made, it had no reasonable grounds to

suspect that the company was insolvent?

These questions mean that unfair preference claims are rarely

clear-cut. Nevertheless, liquidators will sometimes make claims

against all creditors who might conceivably have received an

unfair preference from the company. Defending these claims will

often involve incurring legal costs.

prove to be of great strategic advantage upon insolvency. The

use of such a clause should always be subject to informed

legal advice. In this case the creditor should argue “we have

the earlier created equitable interest” although creditor Z will

counter with “you didn’t register for seven years and that’s

Postponing Conduct!”

My advice, get a lawyer who knows how to outfox the other

lawyer!

- James Neate, Partner, Lynch Meyer Lawyers , AICM National Legal Affairs Director

aicm Can We Help?


Readers faced with a similar situation would be well

advised to ensure that any costs incurred in defending an

unfair preference claim are taken into account in the terms of

settlement, such that the terms contemplate payment of costs

in addition to the settlement sum, or the settlement sum is

reduced on account of the creditor’s costs.

– Matthew McCarthy is a Managing Associate and Glyn Ayres is a Lawyer in the Corporate Insolvency and

Restructuring practice group of Allens in Melbourne.

Response 2The key principle in the consideration by a liquidator of any

proofs is that the debt must arise before the day on which the

winding up of the company is made. Further, for there to be

a debt owed by the company there needs to be a contractual

liability by the company for the debt.

In the present case, the creditor has spent money on its own

lawyers to defend a preference recovery action commenced

by the liquidator. There is clearly a debt owed by the company

to its lawyers for the legal advice and representation. Whether

the incurring of these legal costs by the creditor is also a

debt enforceable against the company will be dependent on

the contractual arrangements between the creditor and the

company entered into pre-liquidation.

The creditor is going to have multiple problems in persuading

the liquidator to admit the proof of debt for the $10,000 costs,

for the following reasons:

The contractual arrangements between the creditor and the

company, being the terms of the hire agreement, relate only to

costs and expenses incurred in recovering a debt under the hire

agreement. There is nothing in the contract to cover legal costs

incurred in the defence of a preference recovery action by a

liquidator;

The legal costs have all been incurred after the date of the

winding up and therefore offend the basic principle that proofs

must relate to pre-liquidation debts;

When the creditor decided to compromise the liquidator’s

claim for the amount of $7,000, if it wanted to seek costs,

then it should have sought to include a separate term in the

settlement agreement for payment of costs.

When faced with a weak claim for recovery of a preference,

creditors will not be able to recover their costs unless they

can broker an agreement with the liquidator to pay costs.

Most liquidators will be very unwilling to do this unless there

is obvious evidence in the hands of the creditor to show that

the liquidator’s claim will fail. In this example, if the creditor

remained adamant to recover costs, it really had little choice

but to run the proceedings. If the creditor had won, costs

would have been awarded and made recoverable against the

liquidator.

- Sam Pearlman, Partner, Curwoods Lawyers

FOOTNOTES

1 Corporations Act 2001 (Cth) s 553.

2 See Re Pasminco Limited [2002] FCA 231; (2002) 20 ACLC, [32]–[41]; Expile Pty Ltd v Jabb’s Excavations Pty Ltd [2004] NSWSC 284; (2004) 22 ACLC 667, [25].

Preference Claim Action Timing

QuestionWe have received a letter of demand for alleged preference

payments of approximately $200K from a small regional legal

firm and dated 3rd October 2014. This follows demands by

the Liquidator in September 2012. We attempted to discuss

this matter with the law firm in the weeks after receiving their

letter of demand. On Thursday 11th December 2014 we again

discussed it with the law firm and offered to settle the matter

for $2K. They advised they would consider our $2K settlement

offer but had to file their action against us the following day

as their opportunity was about to expire and the chances of

acceptance of our offer were remote.

The Liquidators were appointed Administrators on 15th

December 2011 and I understand there is a 3 year period in

which to take action on a preference claim. When does the

clock start ticking and what is the minimum action which must

be taken within the time constraints e.g. issue of demand, filing

of paperwork, service of paperwork etc?

– National Credit Manager Sydney MICM CCE

ResponseUnfortunately for creditors (often trade suppliers), a liquidator

has 3 long years from the relation-back day to make an

application to Court to recover a preferential payment.

The reality of the insolvency profession is that liquidators are

often heavily burdened, so the less dynamic or less pressing files

may be left inactive until slower times or when deadlines are

looming.

For this reason alone creditors should not assume that

because a questionable transaction was dealt with, on a

preliminary basis, and not pursued by a liquidator at first

instance, the claim will not be revisited. Unfortunately, creditors

cannot feel assured that, with each day ticking over, it is less

likely that the transaction will be pursued.

When is the last opportunity, for a liquidator to pursue a

voidable transaction and what do they have to do?

In short, liquidators will have 3 years from the relation-back

day to take action to pursue a voidable transaction.

The relation-back day is the day that the winding up of the

company is taken to have begun. A company can be wound up in

different ways, as set out in Division 1A of Part 5.6. Most commonly

the relation-back day will be the day on which either an order is

made that the company be wound up and a liquidator appointed,

or the day on which the company resolves by special resolution

that it be wound up voluntarily. Where the company was under

administration prior to being wound up, the relation-back day may

be deemed to be that earlier date on which the administration

began. As a general rule of thumb for creditors, the relation-back

day will be the day the liquidator was appointed.

If the liquidator wishes to pursue a voidable transaction, the

minimum action he or she must take is to file an application

with the Court before the expiration of 3 years from the

relation-back day. The normal rules as to service will apply to

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Electronic Service of Originating Process

QuestionCan a Statement of Claim be served electronically and if so on

what basis ie must it be attached or can it be in a link?

My case in point is I have received an email from a paralegal

at a NSW law firm who are acting for a Liquidator who is

claiming we received a preferential payment. The email says:

From: Para Legal [mailto:plegal@j&dlaw.com.au] Sent: Thursday, 18 December 2014 1:50 PM To: Hard Done By Creditor Pty Ltd Subject: In the matter of Not So Good Customer Pty Ltd (in liquidation), NSD1234/12

Dear SirJohnno and Davo in their capacities as joint and several liquidators of Not So Good Customer Pty Ltd (in liquidation) v Poor Hard Done By Creditor Pty LtdFederal Court of Australia, New South Wales registry, proceeding no. NSD1234/12

We attach by way of service:Originating Process filed 11 December 2014;Affidavit of Johnno sworn 28 November 2014;Exhibit J-1;Statement of Claim filed 11 December 2014; andGenuine Steps Statement filed 11 December 2014,

contained in the following dropbox link:https://www.dropbox.com/sh/mwgg3j2mlaw94r3/AABpFugJl

Please let us know if you have any difficulty accessing the documents.

the application and accordingly service may take place some

time later (e.g. under the Federal Court [Corporations] Rules

2000, the time for service must be as soon as practicable after

filing and at least 5 days before the hearing) or (e.g. under the

Uniform Civil Procedure Rules 2005 (NSW), the time for service

must be as soon as practicable after filing).

As a side note; liquidators are able to extend the period of

time to make that application to the Court for orders under

section 588FF, however this application for an extension of time

must be filed within the 3 year time period.

Despite the fact that liquidators have 3 long years to

investigate and pursue a preference, creditors should be

proactive in addressing any demand they may receive during

that period for the repayment of a preference. Silence on

these issues is not golden. If the liquidator returns at the 11th

hour and files an application with the Court for an order that

the transaction is voidable and the money is to be repaid the

liquidator may also seek an order for the payment of interest.

In the ordinary case the Court will allow interest to run from the

date a demand for the recovery of the preference was made;

Ferrier and Knight (As Liquidators of Compass Airlines Pty Ltd)

v Civil Aviation Authority [1994] FCA 1571; Kazar (Liquidator) v

Kargarian; In the Matter of Frontier Architects Pty Ltd (In Liq)

[2011] FCAFC 136.

This part of the law (Division 1A of Part 5.6) is not easy.

If you are concerned that an application to the Court was

not filed on time, you should seek legal advice. In some

circumstances a liquidator may have a limited time to pursue

a voidable transaction, such as when the company was under

administration or a DOCA for a lengthy period of time and then

the DOCA failed and the company was liquidated.

- Rebecca Ross and Geoff McDonald, Windeyer Chambers

Rebecca Ross, Solicitor,

Gavin Parsons

Geoff McDonald,

Barrister at Law

As you will see, the proceedings have been listed for first directions at 9:30am on Wednesday, 11 February 2015.

Would you please confirm you accept service of attached documents by return email.

Please contact us if you wish to discuss this matter further.

RegardsPara LegalSenior Paralegal T (02) 1234 5678 j&dlaw.com.au

Interestingly enough 5 minutes later we received the following

email:

-----Original Message-----From: Para Legal [mailto:plegal@j&dlaw.com.au] Sent: Thursday, 18 December 2014 1:55 PMTo: Hard Done By CreditorSubject: Recall: In the matter of Not So Good Customer Pty Ltd (in liquidation), NSD1234/12

Para Legal would like to recall the message, “In the matter of Not So Good Customer Pty Ltd (in liquidation), NSD1234/12”.

If the original email was effective service was this effective

cancellation of that service?

The second issue on this matter is that the Insolvency

Firm of Johnno & Davo were appointed Administrators 15th

December 2011 and Liquidators 1st February 2012. I understand

they have 3 years in which to instigate action for a preferential

payment. When does the clock start ticking? What must they

https://www.dropbox.com/sh/mwgg3j2mlaw94r3/AABpFugJl

aicm Can We Help?


do within the 3 years? FYI in this case we have correspondence

from the Liquidator stating a Relationship Back Date of 15th

December 2011 and have had previous letters of demand and

discussions with the law firm in the months prior to them

sending the above emails.


ResponseDocuments which initiate court proceedings, including

statements of claim, (originating processes or OP), are required

to be personally served in every Australian jurisdiction. Where

service upon an individual is concerned, personal service is

effected by leaving a copy of the OP with the person to be

served or, if it is not accepted, by putting the copy down in

their presence, and telling them the nature of the OP. If the

defendant is a company, an OP may be served by either leaving

it or sending it via post to the registered office of that company,

serving it personally on the director, or if the company is

liquidation, it may be served either by leaving it or sending it via

post to the address of the office of the liquidator most recently

notified to ASIC.

Personal service does not include electronic methods of

service. One exception exists in Tasmania where the Registrar

may approve certain bodies to allow them to serve documents

electronically. However, OPs can be served electronically in

certain circumstances:

1. Subject to a court order for substituted or presumptive

service, such that service may be validly effected by various

electronic means such as email or Facebook (all jurisdictions);

2. Where an express provision in an agreement between the

parties provides for some form of electronic service (most

jurisdictions);

3. Where an OP is communicated to a defendant electronically

and its receipt is proven, or an answering document is filed in

response to an OP received through electronic means (some

jurisdictions only).

In the example given, the original email requested consent to

the method of service, which was chosen, namely the use of a

Dropbox.

In Conveyor & General Engineering Pty Ltd v Basetec

Services Pty Ltd and Anor [2014] QSC 030, Basetec sent

emails to CGE which directed them to documents contained in

a Dropbox facility. McMurdo J had to firstly consider whether

the emails containing the link to the Dropbox themselves

constituted valid service of documents. In considering the

definition of “electronic communication” under the Electronic

Transactions (Queensland) Act 2001 (ETA), his Honour held that

the emails from Basetec did not constitute valid service because

“…the material within the Dropbox was not part of an electronic

communication as defined.”

Therefore, in the example, the email itself does not constitute

service.

Secondly, the relevant legislation, which is mirrored in many

Australian Jurisdictions, required agreement between the

parties to the use of the Dropbox for valid service to occur.

The same thinking would apply to the use of cloud services.

As mentioned above, some jurisdictions recognise informal

or deemed service of documents by proof of service (not Qld

incidentally), which may allow a plaintiff to prove valid service

through electronic means even in the absence of an agreement

specifically permitting service by electronic means.

The final word on electronic service of documents should be

in relation to email itself. In Austar Finance v Campbell [2007]

NSWSC 1493, Austin J said that email cannot constitute service

unless either:

z it is shown that the documents electronically transmitted

have actually been received in a readable form by the person

to be served; or

z the case falls within one of the special exceptions permitted

by rules of court.

Some jurisdictions have rules for when emails are taken

to have been received, many others do not. In short, this is a

complex and unsettled area of civil procedure which differs

amongst jurisdictions. The take home message is to be familiar

with the rules of court in your jurisdiction, and except in

certain specific circumstances, the use of electronic means of

communication to serve OPs will be invalid.

Time Limit on Actions for Preferential Payments

Section 588FF(3) of the Corporations Act 2001 (Act) provides

that an application by a company’s liquidator to set aside a

voidable transaction, which includes a preference transaction,

may only be made:

“(a) during the period beginning on the relation-back day and

ending:

(i) 3 years after the relation-back day; or

(ii) 12 months after the first appointment of a liquidator in

relation to the winding up of the company;

whichever is the later; or

(b) within such longer period as the Court orders on an

application under this paragraph made by the liquidator

during the paragraph (a) period.”

‘Relation-back day’ has meaning depending on the

circumstances from the interaction of Section 9 and Division 1A

of Part 5.6 of the Act.

In our example, Administrators were appointed to the

company on 15 December 2011, and Liquidators were appointed

on 1 February 2012. The appointment of Administrators for our

example is significant. The relation-back day is the date when

the Administrators were appointed, in this instance 15 December

2011. That means that the Liquidator had until 15 December 2014

to issue proceedings for the recovery

of the preference, and unless the

Liquidator had already applied to the

Court within that timeframe for an

order extending time, the Liquidator

will be statute barred from bringing

the preference claim.

– Mark Wenn, Partner, Commercial Disputes & Insolvency,

Mills Oakley Lawyers Mark Wren

Development


If you’ve been to just one conference,

function or event in the last 12 months

then you’ve probably already seen it

happen: The speaker who manages to

destroy a perfectly good presentation.

I like to think it’s the kind of

thing you probably wouldn’t wish on

your worst enemy, seeing someone

squirming at the front of the room as

they try to deliver a message or sell

their product.

It can be as embarrassing, difficult

and disconcerting for the audience

as it is for the presenter and, in some

way, it would be good if you could

help them through it. But, sadly, that

can’t be the case as they steadily go

down in flames.

A few simple changes to the

approach of making a presentation

can change the result completely and

ensure you are not amongst the crash

and burn fraternity.

You want me to speak … Hell No!Some people would rather feed

their right arm to a crocodile – any

crocodile, one of the late Steve

Irwin’s mates if necessary, rather

than stand up in front of a group of

people and speak. And it doesn’t

have to be a room full of powerful

businesspeople that can make you

want to run, screaming, from your

predicament. It might be in front of

a bunch of old school friends, your

footy team end-of-season night,

or a special family gathering like a

birthday or wedding.

Speaking up a storm ... maker or breakerBy Peter Buckley*

Peter Buckely in action as MC at the 2012 National Conference on the Gold Goast.


Development

My sister-in-law, who is an

eloquent, intelligent woman and a

former teacher, recently had to have

a chat at the birthday of a long-time

friend in front of a bunch of other life-

long friends. She says she’s never felt

so violently ill in all her life as in the

few hours before making the speech,

and was sure she was going to be

violently ill in the minutes beforehand.

She remembered most of the things

I’d suggested for making it easy on

her and delivered a very good speech.

Her friends thought it was terrific and

still talk about it. She remains in a

state of delight!!

The fear for people is real and not

to be discredited, but there are ways

to overcome the nerves, maintain the

focus and deliver, at worst, a passable

product.

My knees were shaking...So, what are those fears? Usually

“making a goose of yourself” is up

there with the best of them, being

“watched by everyone”, “under the

microscope” or “under the spotlight”,

having people “question what you’re

saying” or “question what you look

like” are all credible explanations as to

why you might hate to have to be up

on stage.

The adrenal gland does some

wonderful things to help us during

times of distress. For instance, if

you’re being chased by an animal

that wants you for lunch you can

run faster than normal, you can

lift heavier things to get them out

of your way, and your senses are

heightened. Likewise, for athletes,

adrenalin pumping into their system

just before the start of a race can

give them that edge when the

starter’s gun goes off.

After a short while the adrenalin

is dissipated in your system and the

effect wears off. Yep, you’ve survived

the advances of another raging bear

or you have the winner’s gold medal

happily bouncing on your chest

during the victory lap.

But those very same positive

affects from those “nerves”

can work similarly against you,

particularly when you are locked

into a situation of standing in front

of a group of people you are about

to speak to.

Instead of delight, despair can be

the result with a racing heartbeat, dry

mouth, clammy hands and perspiring

from places you’ve never perspired

from before. You can end up with

quick, radical, involuntary movements,

a loss of focus from your brain and

light-headedness.

Have you heard people say “my

nerves got to me”? They’re dead right!

Breathe to relieve...Breathing comes pretty-much

naturally for us. It’s not even

something you have to think about

unless you’ve just sprinted for the

last train and end up gasping for air

as other passengers look at you as if

you’re some kind of idiot.

But it’s about the first thing we

forget to do when we stand up in

front of an audience. Making sure you

breathe, steadily, and at the right time

(this is what punctuation is for) does

a number of wonderful things. It slows

the process down, oxygenates your

brain and gets your rib cage moving,

which leads to a relaxation of muscles

that either work comfortably for you

or contribute to the speaking anxiety.

Steady breathing also counters

hyperventilating, the opposite of not

breathing, both of which will see you

fall down in a funny faint.

Ideally this breathing process

starts well before you get anywhere

near the actual speaking. Also,

countering the quick and radical

movements needs to be done ahead

of time as well. Former champion

golfer, Gary Player says after his

shower in the morning, before he

played a competitive round of golf, he

would dry himself moving the towel

slowly and steadily instead of his

usual rigorous drying method. Why?

Because it meant he was keeping

his system calm and slow so that,

when he stood on the first tee, his

first swing was steady and rhythmic

instead of ballistic and sending the

ball into the trees.

Speaking is the same. It’s easier to

speed up, if you need to, during the

speech than it is to slow down near

the start. If you have to get up from

a chair or move to a central point to

speak, move slowly. In fact, move and

speak slower than you think you are in

the early stages.

Happy faces… Happy places...We humans are generally comfort

zone animals, especially when we’re

under duress. When we’re short on

time we’ll generally head to a car park

in a shopping centre where we’ve been

a number of times before because

we’re comfortable with the area. When

you’re speaking in front of a group

of people you can do the same thing

by finding some comfortable faces.

Pick out a face on your left, one on

the centre left, one on the centre right

and one on your right hand side. In the

The adrenal gland does some wonderful things to help us during times of distress. For instance, if you’re being chased by an animal that wants you for lunch you can run faster than normal


Development

2014 saw our first joint winners Anna Goulubeva of Hilti and Rebecca Edmiston of Bendigo and Adelaide Bank.

Now it is your chance to be in the running for the 2015 Young Credit Professional Award, sponsored by D&B, as nominations are now open.

If you are under 30 years of age as at 30 June 2015 and work in any facet of the credit industry such as collections, customer service, factoring and invoice discounting, credit analysis, credit control, credit scoring, leasing and equipment hire, risk and/or loans, then you have what it takes to be this years Young Credit Professional.

Each Division Winner wins their airfares, accommodation and registration costs to attend the AICM National Conference to be held at the Sofitel Sydney Wentworth, on 14–16 October 2015 The National Winner receives $1000 cash prize and Educational Scholarship from AICM (valued at $2,000).

To register your interest and have an AICM representative contact you with further information and assistance go to www.aicm.com.au

You have what it takes to be the2015 Young Credit Professional.

early stages just direct your speech to

those people. As you get a little more

comfortable in your delivery you can

include other faces until the whole

space is a happy place.

One of the most regular questions

I get asked is “what do I do with

my hands?” Funny thing is it’s not

something we usually think about, but

when we get in front of people we

become conscious of these things and

wonder how to counter it. If you’re

flapping your arms around more than

normal it’s probably your own way of

burning off the nervousness. Some

people have to talk with their hands

so the easiest thing is to remember

to keep your elbows in and just use

your hands. If you start making a heap

of wild gestures people might think

you’re having some sort of seizure –

the old “not waving, drowning” adage.

No worries… I present all the time... Happily surviving the “nervous

starter” phase, or getting through it

only marginally scathed, and making

speeches and presentations on a

regular basis can be very uplifting.

It’s at this time we revisit what and

how we’re doing it. Golf has some

great parallels with public speaking.

For example, the way you set yourself

in front of the ball, before you hit it,

can alter marginally every time you

do it. After a while, without even

recognising it, you can develop

some bad habits that impact on

the result of the golf swing. Yet you

feel comfortable. The same goes

for speaking! Repetitive sayings,

movements, inferences and tones

can all negatively impact on your

presentation, without you actually

realising you’re doing it.

Aw... Shucks… Thanks...Escaping the scene, even to the

back of the room, I believe is greatly

unfortunate. I’m not suggesting you

should hang around sucking every

last vestige of applause from the

audience, but accepting applause

and congratulations for delivering a

speech is part of the finalisation of the

process – a rounding off, so to speak.

A well-delivered presentation,

and the kudos from it, is extremely

empowering, self-fulfilling and can put

you on the leadership radar. Just ask

my sister-in-law! u

*Peter Buckley is a Speaker and Coach on Presentation Performance Techniques, and a Mentor in Management and Staff Development.Go to www.peterbuckley.com.au

Happily surviving the “nervous starter” phase, or getting through it only marginally scathed, and making speeches and presentations on a regular basis can be very uplifting.

http://www.peterbuckley.com.au

Legal


aicm Training News

32 CREDIT MANAGEMENT IN AUSTRALIA • December 2014

When you study with AICM, you’re online but never

alone. Our online system and course resources have been

developed with consultation of the Credit Industry. AICM

online is available 24 hours a day, 7 days a week, and

any questions you may have in relation to your studies is

just an email away. AICM online offers students a holistic

learning approach, with forums, trainer marked activities,

assessments and resources all online. As from 1st March

2015, AICM will are able to pass on significant savings

to our members without compromising on the quality or

integrity of our online training delivery.

AICM is currently the only Registered Training

Organisation that focuses and delivers only Credit

Management qualifications. This enables AICM to provide

specialised industry led training to meet individual

and organisational training requirements through our

customised training delivery by our industry experienced

facilitators. AICM is committed to provide cost effective,

quality training that will enable the development of future

leaders within Credit Management.

Review the AICM Course Outlines to easily determine

which qualifications/units you require, and which units do

not currently meet your Professional Development needs.

At AICM you can undertake a single unit of competency,

there is no requirement that you must undertake a full

qualification.

For more information on why to study with AICM

CLICK HERE

For detailed course information and pricing

CLICK HERE

Face to Face Training:Save these dates in 2015 to continue your learning journey.

z Manage bad and doubtful debts

Build the skills of your credit team. This unit is beneficial

to loans officers, collections and credit officers and credit

team leaders. This course ensures candidates have the

understanding and skills of best practice in the area of debt

collection.

z Manage overdue customer accounts

Credit is more available today than ever before with

a variety of purposes and accessible from a range of

organisations. This can be a personal or business loan from

a bank, a home loan from a credit union, purchase and cash

advanced on a credit card from credit card companies, or

a car and/or other loans from specialist loan agencies. Also

there is the important dimension to business credit also

known as trade and/or commercial credit.

z Factoring and invoice discounting

There has been substantial growth in the use of factoring

and/or invoice discounting arrangements over the past

few years. This course is relevant to people in all areas of

business that provide factoring and/or invoice discounting

arrangement. This course is also beneficial to businesses

that may intend to undertake such arrangements.

Melbourne

26th & 27th April – Manage factoring and invoice

discounting arrangements

22nd April – Manage overdue customer accounts

Enrol with AICM Online and save, as from 1 March 2015

TESTIMONIALS:

The Diploma course has been a review of my experiences in credit and general management. The methods used

throughout the course demonstrate how personal experience has great value within the learning process. Legal

content and management models are discussed alongside practical examples. This makes the learning process very

realistic and even personal.

– Helen Raffin, NSW Member

MY STUDY EXPERIENCE WITH AICM:

My very first Face to Face lesson was a little daunting, as I had not studied for approximately 12 Years but Toni

my Tutor was very comforting and thorough and she made me realise that I knew a lot more that what I thought I

did. Each Assessment was challenging but completing this course has opened up my eyes to a whole new world of

Credit and has made me see that Credit is not just about collecting monies. I can honestly say my experience with

AICM has been fantastic and everyone there has been very helpful and always cheerful.

– Cindy McDonald, Credit Controller – QLD, Australian Liquor Marketers

$$$

Legal

March 2015 • CREDIT MANAGEMENT IN AUSTRALIA 33 December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 33

Brisbane

13th & 14th May – Manage factoring

and invoice discounting arrangements

15th May – Manage bad and doubtful

debts

18th August – Manage factoring and

invoice discounting arrangements

Sydney

20th May – Manage bad and

doubtful debts

21st & 22nd May – Manage

factoring and invoice discounting

arrangements

18th June – Manage overdue

customer accounts

13th & 14th August – Manage

factoring and invoice discounting

arrangements

Please contact [email protected]

to register your interest in a unit to be

delivered face to face.

Corporate Training:Did you know AICM Learning Services

also provides tailored solutions to suit

the specific needs of an organisation?

We are able to help identify training

needs and to then develop and

facilitate a targeted in-house training

program to achieve the organisation’s

identified outcomes. As AICM Learning

Services is a Registered Training

Organisation (RTO), we are able to

offer National accreditation for the

training undertaken. This provides

motivation to the participants and is a

valuable pathway for further learning

and qualifications. AICM have a busy

first quarter delivering in-house

training to the following organisations –

z National Australia Bank

z Baiada Poultry

z Macquarie Bank

z Bibby Financial

Build the skills of your credit team.

This unit is beneficial to loans

officers, collections and credit

officers and credit team leaders.

This course ensures candidates

have the understanding and skills

of best practice in the area of debt

collection.

The ability to identify and

recover an overdue customer

account is a core requirement of

a credit professional.

Outcomes are covered within

this unit:

This course deals with the key

aspects of dealing with a debt that

has been categorised as bad or

doubtful including:

z The steps involved in reviewing

an account to determine if a

debt is likely to become bad or

doubtful

z Understanding the difference

between a bad and a doubtful

debt

z Methods for dealing with a

customer’s excuses for not

paying the outstanding amount

z Negotiating with the customer

to recover the outstanding

payment

z Monitoring and documenting the

outcome of the recovery action

Topics Covered:

Negotiating the recovery process

of an outstanding debt. The

importance of the reporting

function. Identify customer excuses

and reasons and strategies to

avoid payment. Commonly used

reports used in consumer and

commercial credit. Identifying a

bad and doubtful debt. Managing

the outsourced recovery process.

Strategies for minimising

uncollectable debt. Preparing

recommendation for write off.

z This unit will be offered face

to face in Brisbane on the 9th

February and Sydney on the

18th February 2015. Register

your interest early as these 1 day

public courses fill fast. Contact

Debby Manners on 02-9906

4563 for further information.

z Participants that undertake

and successfully complete

the assessment requirements

for FNSCRD403A Manage

bad and doubtful debts

which is a Core unit from the

FNSFNS40111 Certificate IV in

Credit Management will receive a

nationally recognised Statement

of Attainment.

Recent Graduates:Nicholas Samojenko

Julie Cuskelly

Cindy Mc Donald

Jasmine Lynch

Cassandra Erne

Helen Raffin

Daniel Camp

Mark Beauchamp

Michael Campbell

Tea Sabanovic

Antonette Elogious

Patrick McCarthy

Jessica Beikoff

Joshua Della Maddalena

Manage bad and doubtful debts

aicm Training News


Legal


aicm Training News

34 CREDIT MANAGEMENT IN AUSTRALIA • December 2014

There has been substantial growth in the use of

factoring and/or invoice discounting arrangements over

the past few years. This course is relevant to people

in all areas of business that provide factoring and/or

invoice discounting arrangements. This course is also

beneficial to businesses that may intend to undertake

such arrangements.

The following outcomes are covered within this unit.

z Differentiating between the types of factoring and

invoice discounting arrangements that may be

offered to prospective clients

z How to effectively communicate to clients the

different policies and procedures that the client

would need to follow depending upon the type of

product provided

z Strategies to ensure that clients understand how

legal assignment will vary depending on the type of

product

z What information should be provided to debtors

when an arrangement has been entered into with a

client

z The advice that should be given to debtors of the

debt recovery process that will be followed as a

result of the introduction of the factoring and/or

invoice discounting arrangement

z How to manage the relationship between the

client and the factor and/or invoice discounter and

establish ongoing monitoring procedures

Topics Covered:

The History of Factoring and Discounting,

Introduction to Factoring and Discounting, The

Approval Process, Verification, Securities, Risk

Monitoring and Maintenance, Why was the PPSA

Introduced.

z This unit will be offered face to face in Sydney,

Brisbane and Melbourne quarterly in 2015. Register

your interest early as these 2 day public courses

fill fast. Refer to the AICM website for dates, or

contact Debby Manners on 02-9906 4563 for

further information.

z Participants that undertake and successfully

complete the assessment requirements for

FNSCRD502A Manage factoring and invoice

discounting arrangements which is an Elective unit

from the FNS51511 Diploma of Credit Management,

will receive a nationally recognised Statement of

Attainment.

AICM are proud to deliver this unit in collaboration

with DIFA

Factoring and invoice discounting

Legalaicm Training News

Credit is more available today than ever before with

a variety of purposes and accessible from a range

of organisations. This can be a personal or business

loan from a bank, a home loan from a credit union,

purchase and cash advanced on a credit card from

credit card companies, or a car and/or other loans

from specialist loan agencies. Also there is the

important dimension to business credit also known as

trade &/or commercial credit.

With the wide availability of credit comes the

risk that the credit provided will not be returned and

promised payments will not be made. This course

explores the skills and knowledge needed to correctly

initiate and complete the management of customer

accounts which have outstanding payments.

The ability to identify and recover an overdue

customer account is a core requirement of a credit

professional.

Outcomes are covered within this unit:This course deals with the key aspects of dealing with

overdue customer accounts -

z Identify customers requiring collection activity –

including the need to monitor your organisation’s

overdue account reporting system, access and

retrieve relevant information and records, and

review overdue debtors in accordance with

relevant policies

z Establish contact with a customer and attempt to

resolve outstanding payment matters – including

proposing appropriate communication with the

customer and obtaining appropriate authorisation,

making contact with the customer and building

rapport, and advising relevant organisation(s)

regarding the purpose of contact

z Negotiate resolution of outstanding payments

with the customer – including advising debtors

of the possibility of legal action for non-payment,

using appropriate techniques to achieve resolution,

confirming negotiation outcomes and diarising

further actions;

z Monitor payment agreement to ensure the customer

has adhered to the agreement – including reviewing

accounts regularly to check payments have been

received, dealing with breaches of the agreement

promptly and appropriately, and referring

outstanding payment matters to appropriate

personnel.

Topics Covered:Making contact with the indebted customer, Customers

at a special disadvantage, communication and rapport

building skills, getting the facts, attitude is everything,

planning the call, making a successful call, dealing

with difficult situations, brain function during conflict,

dealing with really angry customers, follow up actions

and documentation.

z This unit will be offered face to face in Melbourne on

the 22nd April, Brisbane on the 15th May and Sydney

on the 18th June 2015. Register your interest early

as these 1 day public courses fill fast. Contact Debby

Manners on 02-9906 4563 for further information.

z Participants that undertake and successfully

complete the assessment requirements for

FNSCRD405A Manage overdue customer accounts

which is a Core unit from the FNSFNS40111

Certificate IV in Credit Management will receive a

nationally recognised Statement of Attainment.

Manage overdue customer accounts


Privacy

z Consumer Credit – is defined as credit:

a. for which an application has been made by an

individual to a credit provider, or that has been

provided to an individual by a credit provider, in

the course of the provider carrying on a business

or undertaking as a credit provider; and

b. that is intended to be used wholly or primarily:

i. for personal, family or household purposes; or

ii. to acquire, maintain, renovate or improve

residential property for investment purposes; or

iii. to refinance consumer credit that has been

provided wholly or primarily to acquire, maintain,

renovate or improve residential property for

investment purposes.

z Default Information – is limited to Consumer Credit

and in relation to guarantees, only guarantees of

Consumer Credit.

If the credit is ‘consumer credit’ are you allowed to list Default Information? Yes, subject to further requirements but as this article

focuses on commercial credit, I won’t go into that detail here.

If the credit you grant is ‘commercial credit’ (defined as NOT consumer credit) are you allowed to list a commercial default? Yes, but as it is not within the definition of default

information relative to Part IIIA, the rules in that section

of the Act regarding ‘default information’ do not apply.

If the information about the individual relates to

commercial credit (such as someone who gave a personal

guarantee), then only the more general rule about personal

information under the APPs would apply.

So – the 2 KEY QUESTIONS are:

1. What sort of credit is involved – CONSUMER OR

COMMERCIAL? and

2. Are you seeking to list the default against a business

or a person?

Assuming that the credit is COMMERCIAL CREDIT:

z If you list against a business the Privacy Act does not

Default listing and credit repair– some tips for two potentially troublesome areas

By Michael Hartman*

The following is general comment and may not be appropriate to rely upon in any specific instance. We recommend if you have concerns about a specific situation that you seek independent legal advice.

Default listing has become increasingly complex under the

Amended Privacy Act and Australia now has probably the

world’s most complicated requirements for default listing

including among many other things:

– requirements for multiple notifications;

– requirements for time periods between notices and

from notices to listing events; and

– complexity regarding what information can be listed.

“Credit Repair” is a new “industry” that is largely

centred around default listing, in particular seeking to

remove defaults from an individual’s credit file. Their

practices are increasingly causing credit providers

concerns, and this is likely to only get worse.

Relevant DefinitionsPart IIIA of the Privacy Act is heavily reliant on a set of

complicated definitions to construct various constraints

and permissions with regard to the use of personal

information. They are used like building blocks.

Three definitions are key in terms of default listings

(known as Default Information); Credit Information,

Consumer Credit and Default Information.

z Credit Information – defines and limits the inputs to

an individual’s credit report. Under Section 6N (f)

default Information is listed as one of things that

can be included.


Privacy

apply, because a business is not a person so information

about a business is not personal information.

z If you list against a person (such as someone who

has given a ‘personal guarantee’), this information is

personal information and the APPs would apply. The

APPs are far less prescriptive and it would seem that

so long as you notify the individual that their personal

details could be used to list a default in relation to the

COMMERCIAL credit you extended, then that would

seem to meet your obligations.

Note – there are also APP provisions about ensuring

that information is kept up to date and if the debt has

been subsequently paid, then that should be reflected

in a timely manner, something that requires effective

tracking to achieve.

The Credit Reporting Bodies will likely have procedures

and requirements in relation to both listing and updating

COMMERCIAL defaults, whether they are listed against a

business or an individual. It is important that you get a copy

of these and follow them exactly and if you are not clear,

ask your supplier to explain.

Credit Repair One of the tactics used in ‘Credit Repair’ is to accuse you

of breaching sections of the Privacy Act (including Part

IIIA and/or the Credit Reporting Code of Conduct) and to

threaten to take the matter to an Ombudsman Service if

you don’t remove the default.

Based on the above, if they are referring to Part IIIA, and

the credit involved is COMMERCIAL, you need to ensure

your listing was placed on the correct file – the individual’s

COMMERCIAL file and not their CONSUMER file.

If the listing was placed on the wrong file, you will need

to work with the Credit Reporting Business or multiple

businesses that you reported the data to, and have the

listing rectified.

If the listing is on the correct file (or you had it on

the wrong file but have now listed it properly on the

commercial file), it is my understanding, as confirmed by

a Financial Ombudsman Service “FOS” representative,

the listing must comply with the more general APP

requirements and what is generally ‘fair’.

What could that require?

If you can show that you have given notice, have listed

the correct type of default (being NOT a consumer default)

and have followed updating procedures, it may be that

FOS would uphold your listing and deny the request by the

Credit Repairer to have it removed.

Further, FOS has very recently issued a statement

about the actions of credit repairers as it seems they think

that some credit repair companies attempt to ‘abuse’ the

system and bully you into removing a default listing. When

this is determined, FOS will not charge their member

for the case. You can find more detail here: http://www.

fos.org.au/the-circular-20-home/fos-news/feecharging-

representatives.jsp u

*This briefing was prepared by Michael Hartman, one of the Principal Consultants at Inflexion Point Consulting. www.inflexionpoint.com.au

You can contact Michael at [email protected] or Debra at [email protected]

Change of name: from COSL to CIOCredit Ombudsman Service Limited (COSL) has changed its name to ‘Credit and Investments Ombudsman

Limited’. The EDR scheme that is operated by the company is now known as ‘Credit and Investments

Ombudsman’ (CIO).The change of name is not part of a re-branding exercise or intended to signal a change

in operations; rather, it is simply intended to more accurately reflect the composition of COSL’s existing

membership, which has for some time also included financial

advisers and managed investments schemes.

All contact details including COSL email addresses will remain

the same.

“Credit Repair” is a new “industry” that is largely centred

around default listing, in particular seeking to remove defaults from an individual’s

credit file. Their practices are increasingly causing credit

providers concerns, and this is likely to only get worse.

aicma r o u n d t h e s t a t e s


queensland

恭喜发财 / 恭喜發財

Happiness and Prosperity for this Year of the Sheep 2015I would like to welcome our National Partners Veda, D&B,

Austral Mercantile and our Divisional Partners Results Legal,

Randstad and Vincents, all of whom assist us in bringing you

informative, best of breed presentations and events relating to

the credit and accounting professional.

This year is no exception, our first presentation was a

breakfast session on 18 February at Vincent’s examining the

PPSA and the finer details of perfection of PPSR.

Our Credit Network Nights (CNN) kick off on Wednesday

11 March at Tattersall’s Club in Brisbane. This year we are

trialling a number of other venues starting with Customs House,

so keep an eye out for that one.

On 20 March, we are hoping to provide a limited places

event that includes a visit to the Federal Court in Brisbane for a

Corporations Act wind-up proceeding and a bankruptcy public

examination. You will need to register early for this one.

Certified Credit Executive examinations are being held

13-16 March, please contact myself or Peter Ryan our CCE

Qld Councillor. As you can see, we have some snapshots of

our 2014 function at The Regatta. This year I am pleased and

excited to announce that we will be holding our end of year

function at Customs House on 25 November and it promises

to be a gala evening.

The Queensland Council has seen a few changes, your

councillors are an approachable lot, so please feel free to

approach them at functions:

Brian Kay FICM CCE President, Professional Development

Toni Sawyer LICM CCE Mentor, PD, Events Advisor

Greg Young CCE Queensland Director and CCE Chair

Peter Mills Vice President and Law and Legislation

Peter Ryan CCE, Young Credit Professional

Roger Masamvu CCE, Young Credit Professional

Julie McNamara Events, Professional Development

Stacey Woodward Media

Melinda Grob Membership and Events

I would also like to thank Hannes Monaghan and Tarnya

Lowe for their tireless assistance and efforts for 2014. Hannes

has decided to travel afar and we wish him a safe journey.

Tarnya, is having a short break and will hopefully be back with

us later in the year.

Enjoy the New Year and I look forward to seeing you at our

functions, please come up and say Hi.

Julie McNamara, Patane Lawyers.Nick Combis and Toni Sawyer.

Trivial Pursuit winners.Trivial Pursuit winners.



queensland

Review of Christmas event

The Regatta was the venue for our end of year celebrations

and the lovely old lady on Coronation Drive did herself

proud with a very warm welcome. We enjoyed either the

air-conditioning in an upstairs room overlooking the river

or braved the humidity and sat on the veranda, which also

shares the same vista.

As a networking activity we played ‘Trivial Pursuit’

for 3 rounds with prizes for the winners of each round

being donated by our ever generous sponsors.

Queensland Division wishes to acknowledge Dun

& Bradstreet, Results Legal and Vincents Chartered

Accountants for their contributions to a fun evening.

We would also give acknowledgement and thanks

to Patane Lawyers for the donation of the lucky door

prize of an Apple TV, which was won by Roger Masamvu

of JBS Swift Australia. Plenty of food and wine flowed

throughout the evening and as the photographs contest;

there were quite a few people who seemed to have had

a very good time.

Dale Hannan, NCS.

Lisa Clement, NCS. Peter Mills, Thompson Geer Lawyers Julie Cuskelly, Australian Liquor Marketing.

Introducing Queensland CouncillorCOUNCILLOR TONI SAWYER

Grad Dip Financial Service, Cert IV

Bookkeeping, CCE, LICM, JP Qual. Holding

the portfolio of ‘Recorder and Mentor’ for

the 2015 division council

It seems that it is quite common for credit

people to ‘fall into’ credit positions without

any forward planning of a chosen career path

and so it was in this instance with a position

becoming vacant because of a resignation. Consequently at a

young age Toni was thrust into the world of collections and credit

with the nonchalant comment of ‘Surely you can ring the customer

and remind him to pay his account on time’.

So life in the fast lane began with Toni joining AICM as a student

member in 1983 when studying the TAFE units of Credit I and II

in the Diploma of Accounting unit. This was while working in the

wholesaling industry for Seismic Supply a division of MacDonald

Hamilton Pty Ltd as National Credit Manager.

When this organisation moved to the west of the city, Toni

moved to Haymans Electrical, as an Area Credit Controller

Tarnya and Toni.Stacey Woodward



queensland

and stayed for 8 years before being poached to join a new

wholesaler in the market place. Consequently life at Ideal

Electrical began in a small way and over the 12 years expanded

from 3 outlets to 64 outlets across the eastern seaboard.

In the last couple of years at Ideal, there were mergers and

takeovers which resulted in a nice handshake and accepting

the redundancy package. During these years at Ideal Toni

completed the Certificate IV, Diploma and Graduate Diploma

of Financial Services and also the TAA Trainer and Assessor

qualification.

It was also during this time, in 1998, that Toni became more

involved with AICM and came onto council for Queensland.

Since that time Toni has served on council in many capacities,

being portfolio holder and becoming the President and a

Director.

After the move from Ideal Electrical and out in the world as

a contractor for sick leave and holiday relief that Toni became

more involved with AICM, becoming one of the trainers for

Queensland in the delivery of the AICM Qualifications, both

face to face and online. In 2004 Toni accepted the contact

for State Executive Officer and was the Chief Organiser for

activities held by the council.

Toni is now a mentor to the new councillors, advising them

on the requirements of their respective portfolios and our

recorder (minute taker). Toni continues to work on contract

and is expanding her horizons once again by becoming a BAS

Agent and delving more into the bookkeeping/accounting side

of business.

During the years of Haymans and Ideal, Toni and her

husband travelled extensively for culinary competitions with

her husband competing twice in the Culinary Olympics and

bringing home ‘Gold’. Relaxation is essential in the world of

credit so gardening is a hobby along with occasions of great

food, good wine and friends being a favourite activity.

11 March

Credit Network Night (CNN) – Process Serving/Claiming back goods of valueSpeaker: Clive Rix and Pat Asange

VENUE: TATTERSAllS ClUb

13 – 16 March

CCE Exam 20 March

Federal Court Visit – Public GalleryAM Session – Corporation Winding UpPM Session – bankruptcy

15 April

Credit Tool Box – Collect with Confidence (Part 1 & 2)Part 1 and 2 each a Half Day Seminar

VENUE: RANDSTAD

13 May

CNN – Privacy, Credit Reporting, EDR SchemesSpeaker: COSl, Venue: TbA

10 June

CNN – Re-enactment of Enforcement HearingVENUE: TbA

8 July

CNN – Trivia Night, VENUE: TbA

22 July

AGM & YCP Awards, VENUE: TbA

August

Annual Golf Day

19 August

Credit Tool Box – Leadership & Management Skills (Part 3 & 4)Part 3 and 4 each a Half Day Seminar, VENUE: TbA

8 September

CNN – Identity Theft & FraudSpeaker: Fraud Squad Qld Police

11 – 14 September

CCE Exam

16 September

Credit Tool Box – Insolvency Issues (Part 5)VENUE: TbA

October

CNN – People in Credit, Challenges & case studyVENUE: TbA

14 - 16 October

National Conference – SydneyVENUE: SOFITEl WENTWORTH HOTEl - SyDNEy

Events Calendar

The Australian Institute of Credit Management welcomes our Partners for 2015.

Divisional Partners

Our National and Divisional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit

Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry

please consider them when you require assistance.

National Partners



new south wales

President’s Report

Happy New Year to all. We would like to thank our National

Partners Veda, D&B and Austral as well as our Divisional

Partners Ampac, Randstad, OnGuard, NCML and Results Legal

for their ongoing support and looking forward to working with

them all again this year.

Following on from a great 2014, which culminated in the

Pinnacle Awards dinner in December, we have an exciting year

in front of us with the 2015 National Conference being held

in Sydney for the first time since 2009. The NSW council is

extremely excited to be hosting a fantastic event for all of you.

We have some fantastic events happening this year, which

kicked off with the Credit Symposium on February 10th.

We also have some fun Youth Network Nights planned as

well as a wine tasting night.

I urge all those eligible to sit the CCE Exam scheduled for

the weekend of 13-16th March 2016. The CCE designation

allows you to display your experience and knowledge of the

Credit Profession and use of the post nominal helps promote

our profession

We have a committee working to design an event

specifically targeted at Women In Credit. This will be a new

addition to our calendar and thanks to some great feedback

and support it is set to be a fantastic event, which will be

designed with women in mind but open to all

Our Golf Day will be held on the Tuesday preceding the

conference and has attracted a lot of interest and support. Look

forward to an even bigger and better event than last year’s

sensational event at Oatlands Golf Course.

We will again wrap up the year with the very popular

Pinnacle Awards and Master Class.

We have a lot of other events in between so get on the

AICM website and check out what we have in stall.

Look forward to seeing you all soon.

CCE Profile

KEITH DEERGroup Credit Manager

– Alto Group

CCE since 2006

“I have worked in the

credit industry for over 32

years, working with Alto

Group for almost 23 years

and I have been a CCE

since 2006 doing the

exam 9 years ago. This

was the first exam I had

sat in quite a few years

and I found the process

challenging however I received good support from my peers

and other CCE’s who encouraged me to study and use my

experience in Credit that I had picked up over the years.

The examples set by past CCE’s like Ken Sheppard

motivated me to become a CCE initially however what

becoming a CCE has done for me is to give me greater

development opportunities, professional benefits and

knowledge and networking contacts, I highly recommend

that other credit professionals consider becoming a CCE, not

just for their own benefit but to also raise the profile of the

industry and business process. The support I have received

from the Institute and my other colleagues has been fantastic

and invaluable and I would like to see others benefit like I

have done over the years.”

NSW Symposium

On 10 February the NSW division held the Annual Credit

Symposium. 75 people attended to hear the latest

Craig Tinkler, Geoff McDonald, Aaron Lucas, Rebecca Ross and Jason Tony.

Geoff and the Panel in action at the NSW Symposium.



new south wales

climbing up the railing to jump in front of a train. Nathalie was

quick to grab the lady, seek assistance and stop what could

have been a very sad situation. Nathalie walked the lady to the

platform, alerted station staff and accompanied her on the train

to Wolli Creek Station where staff had been alerted and had

paramedics on hand to address the situation. We were quite

rightly proud of Nathalie and as her manager, Sev addressed

the whole team. She told them on her way to work Nathalie had

come across a lady attempting to commit suicide and she “had

assisted her”. The whole office broke up in laughter thinking

Nathalie had helped the woman jump.

The 2014 Senior Credit Officer of the Year

(Supported by Dun & Bradstreet) was – Imelda Quiros,

Coates Hire

In her nomination Imelda was described as: a quiet achiever

of the team. In financial year 13 her D.S.O. averaged 53.3

days and in financial year 14 the average was 44.3. This is a

Andrew Smith, Sev Indrele and Max Maximillian (Check Max’s Linkedin Profile if you haven’t met him yet!)

Imelda Quiros – 2014 Senior Credit Officer of the Year

developments in law and legislation relating to Credit, Debt

Collection and Insolvency from Geoffrey McDonald, Barrister

and Chartered accountant. Geoff was joined by a panel of

leading legal and insolvency professionals, who tackled

numerous, tricky and sensitive questions, including why are

liquidator’s fees so high. Thank you to Geoff and the panel

who included:

z Rebecca Ross, Gavin Parsons

z Arron Lucas, Worrells

z Jason Tang, Cor Cordis

z Craig Tinkler, O’Brien Palmer

End of Year Awards Dinner

Thanks to the naming sponsors Dun & Bradstreet and the

individual award supporters, the NSW Division recently held the

second “Pinnacle” awards to recognise leading performers in

our industry.

The awards were presented at the End of Year Awards

dinner at the Pullman Hotel Sydney Hyde Park on Thursday

20th November 2014.

The Pinnacle awards recognise outstanding achievements in

the Credit Industry. The 2014 winners were:

Legal Representative of the year was

– Paul Hutchinson, Force Legal

In his nomination Paul was described as: by far the coolest and

calmest legal service provider in the Country. “Happy to provide

unbilled legal advice to customers, to help their business.”

He is always available to provide one-to-one legal advice to

customers. He challenges the status quo on the enforcement

of debt.

2014 Recruitment Consultant of the year was

– Vanessa Alkon, Randstad

In her nomination Vanessa was described as: Vanessa makes

the effort to get to know the business of her customers and

is reliable and professional in her dealings. She has a great

personality to boot.

2014 External Collections/Mercantile agent of the year was

– Andrew Smith of Australian Recoveries and Collections

In the nomination ARC was described as follows: Andrew and

his team deliver service and results, which are second to none.

ARC have consistently been able to deliver great results and

had a success rate of 90%.

The 2014 High Five Award (Supported by Australian Recoveries

and Collections) was awarded to Sev Indrele from Coates Hire

The nomination of Sev shows why Sev is worthy of the high 5

award: One of Sev’s team, Nathalie, was on her way to work

one morning and was crossing the railway bridge at Ingleburn

on her way to the station, when she observed a lady in front

of her place her handbag on the ground and commence



9-day improvement in a department, which operates around

the D&B national average, of 55 days. In addition, Imelda

improved her 90-day debt from an average of 7.7% in financial

year 13 to 3.4% in financial year 14 i.e. more than halving it.

She has continued to improve with the September D.S.O. sub

44 and 90 days 1.2% further down to 2.2%. A great result from

someone known as “Rowdy”.

The 2014 Credit Supervisor of the Year (Supported by

Onguard) is – Nicole Chesher from Ecolab

In her nomination Nicole’s achievements included: Thanks

to Nicole’s passion and drive with her team, DSO has been

driven down by 4 days over the last 12 months and cash

collections with customers overdue is lower than ever. Nicole

has achieved all of this whilst training 3 new team members.

Nicole also delivered a first for Ecolab by cross-training a whole

team across receivables platforms. Now a customer can call

the receivables team and deal with one team member for all

receivable issues. She is well respected within Ecolab and

delivers excellent results to ensure the receivables team is

highly regarded and acknowledged within the Ecolab business.

Congratulations Nicole.

The 2014 Credit Manager of the Year (Supported by AMPAC)

was – Adam Clarke from Startrack

In his nomination Adam was described as a great leader of

teams spread across multiple States. He is a great new age

Credit Manager always looking towards the future and what

can be implemented for process improvements within the

business. This year he implemented systems automation

in many processing areas such as statement automation,

payment allocation and reporting tools never available

before. Exposure in 60 days has decreased from 5% to

2.5% in only 3 months. Due to Adam’s efforts the business

has enjoyed benefits well beyond industry standard, which

includes huge cost reductions and just as importantly the

streamlining of processes and efficiencies. Congratulations to

Adam Clarke.

2014 Credit Manager of the Year Adam Clarke with Mark Logue.

4 March

“How to prepare for the CCE exam” Speaker: Arthur TchetchenianSubject: Preparation for CCE Exam

VENUE: NCI boardroom. lvl 1, 53 berry St, North Sydney

10 March

Parramatta Networking Night Speaker: Amanda logan-Halaj Subject: Team building around Credit Issues

VENUE: Rydges Hotel, 116-118 James Ruse Drive, Rosehill

13 – 16 March

CCE Online Exam

14 April

PPS Review Speaker: bruce Whittaker, Subject: PPS update

23 April

City Networking Lunch Speaker: Sam Pearlman Subject: Summary Judgment Applications

VENUE: CURWOODS bOARD ROOM

12 May

Women in Credit Speaker: TbA, Venue: KPMG board Room

21 May

City Youth Network Night – Trivia VENUE: WINDSOR HOTEl

9 June

Parramatta Networking Night Speaker: Michael Witt, Subject: Economic Update

VENUE: RyDGES HOTEl, PARRAMATTA

16 July

YCPA Awards Night, VENUE: SOFITEl

11 August

City Networking Night Speaker: to be confirmed, Subject Forecasting Cash Flow

11 – 14 September

CCE Exam

20 September

City Networking Night – Wine tasting VENUE: CITy VENUE

8 October

City Youth Network Night – Barefoot Bowling VENUE: PADDINGTON

13 October

NSW/National Golf Day VENUE: OATlANDS GOlF COURSE

13 October

Harbour Cruise VENUE: SyDNEy HARbOUR

14 – 16 October

AICM 2015 National Conference 2015 Master Class/Credit Symposium and Pinnacle

VENUE: SOFITEl

Events Calendar




Divisional Partners




National Partners

new south wales

Trevor Goodwin and Gail Crowder.

Save the date: 12th May 2015 – for our Inaugural Luncheon: “Women in Credit”

“In recognition of the unique

challenges and interests of our female

members, the NSW AICM Division

has formed a committee to help

develop and encourage female Credit

Professionals.

This NSW Initiative has an overall

aim for AICM take a lead role in

developing the needs of “Women in Credit”

To ensure any activities developed meet the needs of

“Women in Credit”, we asked our female members to complete

a very brief survey. All participants were in the running for a

Simon Johnson Hamper valued at over $70.00.

Congratulations to Rachel Burford from Electrolux.

Based on the survey results from our members, we will

launch our “Women in Credit” Inaugural Luncheon on 12th May

2015. So save the date, details will be released shortly.

- Sue Day, AICM NSW Councillor

Rachel Burford

aicma r o u n d t h e s t a t e s south australia

President’s ReportWelcome to 2015! Adelaide is ‘alive’

having just hosted the Tour Down

Under and now preparing for the

Clipsal 500, Adelaide Fringe Festival

and Womadelaide. The weather

is turning up the heat as March

approaches and we expect the

temperatures to soar to 41 degrees

for another run of warm, sunny days in

Adelaide.

This brings me to the Functions team

who have just held our first networking

event at the beautifully refurbished

Kent Town Hotel on a very warm and

sultry evening. Our second event for

the year was the well organised Credit

Symposium held at Hahndorf in the

Adelaide Hills on 20 February. With

a high class list of speakers sought

out by the PD team, it was a full day



south australia

of education on all levels in credit,

management and behaviour.

The divisional Council is continually

open to our member’s suggestions

pertaining to events, speakers and all

educational functions. We urge everyone

to complete the online survey so the SA

committee can continue to deliver to meet

our member’s needs.

These first couple of months of the year

have been challenging but we are working

well with Nick and the team in National

Office with almost daily communication!

With the loss of our EO, Kerry Hammill,

we have had to pull together as a team

to liaise and work as one to start the year

rolling. At the end of year 2014 networking

event we gave Kerry a warm and friendly

send-off. It continued well into the night

as we had a super turn out of senior

and junior members who had to eat the

never-ending scrumptious desserts before

leaving! A sincere thank you to Kerry for all

the years of support to the committee and

the AICM.

This year we are very proud to say

we have another new Divisional Partner,

Worrells and on a National level Austral

Mercantile. Thank you to all of these

wonderful strong supporters of the AICM.

We trust that you will enjoy the events

throughout the year, and your ongoing

feedback and support is important to the

Institute.

Our Membership team continue waving

the flag and we look forward to welcoming

our Corporate Group from Bendigo and

Adelaide Bank very soon. Whilst our

National YCP winner, Rebecca Edmiston, is

being very proactive attending committee

meetings she is also encouraging her team

members to become involved in the AICM.

Well done Rebecca!

A busy calendar year is ahead including

the ever-popular Quiz Night with a different

approach this year (!) and holding another

educational day with relevant speakers for

our members and associates.

Look forward to seeing you all

throughout the year!

– Gail Crowder

SA Division President

Gail Crowder – always a straight shooter.

Gail Watt and Lisa Anderson.

Lisa Anderson and Mike Hayes.



south australia12 March

Credit Focus – Collections by TelephoneSpeaker: Mike Murphy Subject: Introduction to credit, Telephone techniques

VENUE: EDUCATION DEVElOPMENT CENTRE, HINDMARSH

9 April

Credit Focus – The role of Mercantile AgentsSpeaker: Gail Crowder/Wade bekesi Subject: Collecting your debts


13 – 16 April

CCE Online Exam

14 April

PPS ReviewSpeaker: bruce Whittaker, Subject: PPS Update

16 April

Networking Evening, VENUE: TbA

7 May

CCE lunch Speaker: to be confirmed, VENUE: TbA

14 May

Credit Focus – Evening SessionSpeakers: Josh Richards and Melanie birdSubject: Mock Court Hearing, Venue: TbA

5 June

Quiz Night, VENUE: TbA

11 June

Credit Focus – Liquidation Case StudyVENUE: EDUCATION DEVElOPMENT CENTRE, HINDMARSH

9 July

Credit Focus – The basics of creditSpeaker: Trevor GoodwinSubject: Processes – Risk analysing customers


August

Awards Dinner 2015, VENUE: TbA

13 August

Credit Focus – Trading trustsSubject: Credit approval, liability and recovery action


10 September

Credit Focus – Bad debts and ways to avoid themSubject: Processes – Risk analysing customers


11 – 14 September

CCE Exam

8 October

Credit Focus VENUE: EDUCATION DEVElOPMENT CENTRE, HINDMARSH

14 – 16 October

AICM 2015 National ConferenceVENUE: SOFITEl SyDNEy WENTWORTH

Events CalendarFunctions Report

Our first social function for the year was a network night held

at the “Jungle-themed” Kent Town Hotel in the Babble on Beer

Garden, on Thursday 12th February. This unique and sporty

venue boasts 5 levels of different entertainment and the room

we were allocated was a perfect size for our event.

Although it was a very warm night those in attendance

enjoyed the evening and had fun playing darts and 8-ball while

mingling with other attendees. There was plenty of food served

personally by the staff who had unique names like Sandra

Bullock and Sean Penn! What a quirky venue….

Gail Crowder and Trevor Goodwin spoke about the coming

year and how S.A. Divisional Councillors are already busy

planning educational and social functions. Members who

attended on the night were also thanked for their attendance

on such a warm evening and their continuing support of the

Institute. It was a good commencement to the year’s social

calendar.

The Functions Committee is keen to add variety and

“something different” to 2015. We are looking at venues and

events that will be interesting and entertaining for members

and their colleagues.

During the year we will be holding functions including the

network evenings and the Awards Night, as well as the Quiz

Night and other functions requested by our members.

– Trevor Goodwin, Functions


Divisional Partners




National Partners



November Networking Night.

victoria/tasmania

November Networking Night

An exceptional turnout to our November Network Night where

Tracey Rothwell (Rothwell Laywers) provided a standout

presentation on Section 60(3) of the Civil Procedure Act 2010.

Tracey, a long time member and supporter of the AICM, now

focuses services to clients reviewing and advising on credit

applications, terms and conditions of trade and credit policy to

ensure the best possible return for her clients in the event of

a customer default. The presentation covered the burdens of

proof the supplier has when issuing a claim against a debtor

and gave key tips on how you can improve your terms and

conditions and processes to reduce the risk of your customer

defending a claim against them. Tracey specifically explained

Section 60(3) of the Act, which determines that the Court may

strike out a defence that “has no real prospect of success”,

how the Court of Appeal has interpreted this section and

how it assists you so that you may avoid a full trial, save time

and costs. Members and guests expressed that the network

night was both enjoyable and extremely informative. A big

thank you to Tracey and Rothwells for donating your time and

energy to the AICM and providing information that will greatly

benefit members.

November Networking Night – Tracey Rothwell.





victoria/tasmania

VIC/TAS Division 2014 Christmas Party@ Krimper (Guilford Lane)

Approximately 80 members and guests attended the 2014

annual Christmas Party for the Vic/Tas Division, held at Krimper

in Guilford Lane. A much more casual affair this year allowed

people to mingle and talk to their hearts content. Steve on guitar

provided background music and delighted event goers with a

variety of popular tunes, which complimented the low-key style

of the event. Lou Caldararo VIC/TAS President made a brief

presentation, thanking the event sponsors and members and

guests for their attendance. Many members expressed their

appreciation and enjoyment of the evening, and complimented

the AICM on the event. The committee would like to take this

Lou Caldararo, Vladimir Espinoza, Clara Caldararo, Ann Marie Gambera and Noula Setinelli.

Melanie Veld, Rosina Edgar (Mercedes Benz), Maureen Grant (Lindt) and Charles Tims (Tuftmaster Carpets).

The boys enjoying the Christmas party.

Daniel Greenhoff, finalist YCP, Brooke Lawrence, Sophie Bouhalis and Amaran navaratnam, Winner Tony Mamone Award.

opportunity to thank the event organisers for their hard work in

organising such an event. We all appreciate how challenging it

is to come up with something different each year that will attract

more attendance, and to thank all the members for their support

in attending events during the 2014 year.

Suggestion BoxAs a Credit Professional if there is a topic that we have not

recently covered that you would like covered or a social event

you would like us to try please email [email protected] and

we will raise it at the next committee meeting for consideration.

Or click here to provide feedback on the 2015 calendar.




victoria/tasmania

EventsSave the dates and mark your calendars

13 - 16 March 2015 – CCE Exam

All members preparing for CCE Exam should be ready for the

exam weekend 1st-2nd March 2015

19th March 2015 Bullying in the Work place

Speaker: Frank Gambera, Director McMahon Fearnley Lawyers

Pty Ltd.

16th April 2015 The successful restructure of a distressed

business

Speaker: Robyn Erskine, Partner Brooke Bird.

Sophie Chatz

MELBOURNE NETWORK EVENTS (1 CCE Point for each Network Evening)

19 March 2015

Bullying in the Work place Speaker: Frank Gambera, Director McMahon Fearnley lawyers Pty ltd.

16 April 2015

The successful restructure of a distressed business Speaker: Robyn Erskine, Partner brooke bird

21 May 2015

PPSA made easy for Credit Managers (Breakfast Session)

Speaker: lionel Meehan, Partner at Ashurst lawyers

18 June 2015

How to make good staff better Speaker: Glenda linscott, Director Performance with Confidence

20 August 2015

What defines a good Leader? (Breakfast Session)

Jason McCutcheon, Proprietor biscom

19 November 2015, AbC of financials

YOUTH NETWORKING

5 March 2015, Youth Networking Event: Ten Pin Bowling 17 September 2015, Trivia Night

HALF DAY SEMINARS (3 CCE points for each Seminar)

12 March 2015

101 of Credit for New Credit Managers or Supervisors

10 August 2015, See you in Court!Speaker: Tracey Rothwell – Rothwell lawyers

CCE EVENTS (1 CCE Point for each CCE event)

14 May 2015: CCE Breakfast (7.15am – 9.00am) 26 November 2015: CCE Breakfast (7.15am – 9.00am)

CCE EXAMS

13 – 16 March 2015

11 – 14 September 2015

DINNERS & FUNCTIONS

8 July 2015: YCPA Dinner

14 – 16 October 2015:

AICM National ConferenceVENUE: SOFITEl SyDNEy WENTWORTH

4 December 2015

Christmas Party River Cruise (Subject to numbers)

Events Calendar


Divisional Partners




National Partners



western australia/nt

President’s Report

Welcome to my first report for 2015.

I would like to thank those members who made their way to

South Perth Yacht Club for our 2014 Christmas Sundowner. It

was a great night with lots of delicious food, cool refreshments

and plenty of banter – a beautiful way to end a very busy year.

It was also an opportunity for me to acknowledge a number

of members with their membership milestone badges and to

welcome our new 2015 National Partner of the AICM in Austral

Mercantile Collections as well as thank our 2014 WA Partners

for their support.

I would now like to thank our 2015 WA Partners, Ferrier

Hodgson, Price Sierakowski Lawyers, FTI Consulting, Nova

Legal and our new sponsor, Jones Business Services, for their

continuing support. It is very much appreciated. Last but not

least I would like to acknowledge the 2015 WA Council. I am

very lucky to have such an enthusiastic group of people who

are all working hard for the benefit of the WA member base.

I am particularly excited about some great events we have

planned for 2015 starting with a Professional Development

morning session on 18th March and our first in the breakfast

club series later in March. In particular our ‘Twilight Credit

Congress’ which will be an afternoon/evening event on the

20th May featuring some great speakers followed by a Key

Note speaker addressing us over dinner. Our Functions and

Events Chairpersons, Steve Thomas, Lisa Marr and Rowan

McClarty are busily fine tuning the event details (including

special guest presenters). This is a ‘Must’ event for all.

Our events calendar is online and includes a series of

‘Breakfast Club’ professional development presentations

throughout the year, networking opportunities, specialised

training programs, CCE exams on the 13th to 16th March, the

Gala dinner including the 2015 Young Credit Professional

Awards in July, our ‘Women in Credit’ high tea later in the

year and of course our Christmas on the Bay Celebration in

December.

I ask that each and every one of you make an effort to

attend and enjoy all of our events. NOTE: They have been

designed and are being run just for You! I look forward to

catching up with you at our Twilight Credit event on the 18th

March…it WILL be BIG!!

– Colin Phillis, AICM President WA

William Walter40 YEAR MEMBER

The William (Bill) Walter credit

profession journey:

I was fortunate when I left school

in 1960 to start a banking career

(Westpac now) that not only shaped

my business skills and work ethic but

also grew my people skills. At that

time bank employment usually meant moving around Western

Australia every two years which meant I met a cross section of

the town’s community and had to learn how to interact with all

types of people. During my banking time I was privileged to be

selected for two years in Lae, New Guinea. Again another set

of people skills required. In 1969 I was offered and accepted a

junior trading room position with a Perth Stockbroker, however

after two years and with the downturn in the mining industry I

moved to a finance company. This industry had similar practices

to banking but not so controlled and lending was the objective,

risk came second. The organisation taught me skills in risk

assessment and a tried method in collecting overdue arrears

and even the non-conflict approach to repossessing vehicles

from agitated borrowers.

By 1972 I saw cracks appearing in the company’s future and

decided that trade credit control was my next change. I applied

and was accepted by Liquid Air as one of two credit controllers,

reporting to a Credit Manager.

This position was the start of my serious credit career and

with a young financial accountant who was a ex banker, I was

encouraged to expand my business knowledge and start a part

time Credit Diploma course at Perth Technical College and to

join the Institute of Credit Management.

After two years in the position and feeling confident I had

the skills and knowledge needed for a commercial Credit

Managers role, I decided to apply for a Credit Managers job.

I was successful in joining a small timber company, Whitakers

Limited, and had a Credit Controller to assist me. This

satisfied my career aspirations until 1980 and during this time

I completed my Diploma Course and was invited to become a

Councillor of the AICM WA.

By 1980 I decided that I needed to move to a bigger

position and was successful in being appointed State Credit

Manager for the Readymix Group, with a staff of four. This

was a very satisfying position with credit and business

education encouraged and liaison with other credit people and

professionals.

In the late 1990’s the company went through a series of

changes and I decided to leave in 2000 and start my own

home-based business, Corporate Credit Services. The focus

of this business was full credit control solutions and risk

management for mainly SME’s.

In March 2013 when my wife and I decided to retire and on

closing the business we moved to a city apartment to enjoy

another style of living.

My Association with AICM:

I have thoroughly enjoyed my 40 years as a member and

gratefully acknowledge it helped me through education and

many business contacts grow as a credit professional, which in

turn helped me advance my business career.

In the 1970’s I was invited to be a Councillor of the WA

branch and during this period I came to appreciate and realise

the need to have an Association that could represent the

industry and provide specialised training. This was so important

for the dedicated credit career person as skills and knowledge

were required in customer relations, accounting, commercial

law and being a team of the organisation. The other key area

was receiving recognition from employers for the credit role.

I now look back with great satisfaction of what I helped

the WA Council achieve in this dynamic period starting




with <500 financial members, various new credit related

education courses that were held after work and presented

by experienced managers, the yearly 3 day weekend out of

Perth, regular after work sundowners with guest speakers, the

annual list of members booklet, the Privacy Seminar in 1982

that attracted over 200 people and was very profitable, the

visit by the USA Credit Management president, The Institute’s

National President being regularly quoted in the Financial

Review on contentious credit matters, Student subscription for

the Credit Magazine, the continuation of the Diploma of Credit

Management at Perth TAFE, the Division was making a surplus

and finally, the introduction of the Young Credit Professional

of Year. Western Australia was the first state to introduce this

and I think we created something that all members can now

be proud of. I know when my proposal was presented to

the meeting; I was so pleased the President and Committee

immediately liked the concept. All felt there was merit in the

idea and the Institute needed some type of recognition and

encouragement for the young members starting their credit

careers. The rest is history, which pleases me so much, and on

a bragging note, three of my staff from Readymix were awarded

this title over a period of time.

Finally, the credit profession has given me financial security,

enjoyment, job satisfaction, great business awareness, invites

onto other committees and many business associates.

– Bill Walter LMICM, Dip of Cr. Mgmt (WA)

Meet your Councillors

ROWAN MCCLARTY

Assistant Credit Manager at

Automotive Holdings Group Limited

– 3 Years

Qualifications: Diploma in Human

Resources – never worked in

HR though! Diploma in Credit

Management from the UK Institute of

Credit Management.

Credit/Professional background: I’ve always been involved

in credit. I started work in Cape Town, South Africa in a

department store way back in 1991 in the admin department.

Got involved with credit and then moved to another retail chain

(similar to Myer) as a credit supervisor.

In 1998 I moved to London, essentially to travel and see a bit

of the world, but ended up living there for nearly 15 years and

worked in credit for various organisations. I did see a fair bit of

the world, but there’s still plenty more to see and work sort of

gets in the way! Then in 2011 we moved to Perth after having had

enough of the cold and the wet! So far it’s been a great decision.

Current Portfolio: To be determined – wherever required!

Why I volunteered: To help grow the credit community and the

AICM, meet people and give something back to the profession

that I have been involved with for the last 25 years, albeit in

different countries.

My passions: Keeping fit by running and cycling. I play golf

when the time (and the wife) allows. I enjoy cooking and no,

I don’t watch any reality cooking shows! Photography is a

big passion, although finding the time to pursue it is proving

difficult. Top of the list though would be travelling. I really enjoy

visiting new places and exploring and experiencing the food

and meeting people from different backgrounds and cultures.

Contact details: Mobile is 0479 083 244. Tel: 08 9351 4761

TAMERA RUSSELL MICM

Credit Manager at WesTrac – 1 year

3 months

Qualifications: Diploma of Accounting

Credit/Professional Background:

When I finished my Diploma I started

work in a Private Tax Firm, it almost

took me a year to realise that tax

certainly wasn’t for me! I ended up working in an AP/AR /Admin

role and decided Credit was what I wanted to do. I then got my

first credit job, working at Coventry’s. Since then I’ve moved

around through a few different industries, Freight, Labour Hire,

Industrial Services/Construction, Telematics, and Machinery. I

did take a 6-month break from credit to complete secondment

as a Contract Administrator to further my knowledge, but I’ve

found that I enjoy Credit more!

Portfolio: Assistant Chair YCP Portfolio

Why I volunteered: In 2014 I won the YCP WA award, and

joined the council. My aim is to get an increased number of

younger people involved with the AICM and the benefits

surrounding the institute.

My passions: In my life outside credit I’m a Roller Figure

Skating Coach. (Kind of makes sense as I spent about 20

years skating competitively myself, and competed at 9 World

Championships). I still enjoy a bit of fitness, whether it’s roller-

skating round the Swan River or going for a run or a stroll. I

have a bit of a travel bug, (the list of travelled places is really

quite long)…I enjoy travelling to new places and experiencing

other cultures. I also love catching up with my friends for good

food and drink (good quality whiskey of course)!

Contact Details: [email protected]

LISA MARR

Credit Manager at Instant Waste

Management – 3 Years+

Qualification: Bachelor of Arts,

Certificate II Australian Sign Language

Credit/Professional background:

1997 – Recoveries Officer – Main

Roads Western Australia. 2001 –

Accounts Receivable Clerk – Automotive Holdings Group

(North City Holden). 2004 – Credit Controller – Boral Pty Ltd

(Windows). 2012 – Credit Manager – Instant Waste.

Current Portfolio: Associate Chair – Events




13 - 16 March

CCE Online Exam

18 March

PD Event – Collect Debts, Telephone Collection Techniques, Half day seminar

20 March

AICM Breakfast Club – PPS Workshop, Time: 7.15 am

VENUE: MATIlDA bAy NEDlANDS

20 May

Twilight Seminar – ‘Emerging Trends in Credit Management’ VENUE: TbA

12 June

AICM Breakfast Club, Time: 7.15 am


8 July

PD Event – Risk Management, Half day seminar

VENUE: TbA

16 July

Annual Awards and Gala Dinner VENUE: TbA

12 August



11 - 14 September

CCE Online Exam

17 September

Networking Credit Speed Date and quick chat speakers

7 October

PD Event – Risk Management- Insolvency Half Day Seminar

14 - 16 October

AICM 2015 National Conference VENUE: SOFITEl SyDNEy WENTWORTH HOTEl

23 October

High Tea – Women in Credit VENUE: TbA

20 November



10 December

XMAS on the Bay VENUE: SOUTH OF PERTH yACHT ClUb, FRESHWATER bAy

Events CalendarWhy I volunteered: Looking for new opportunity to develop

credit connections and become involved at a grass roots level.

My passions: Fitness of mind means fitness of body! I walk and

or run every day. I have tried many different sporting activities

since moving to WA in 1997. I’m rather competitive, so I have

dabbled in: Dragon Boat racing/sailing/karate/golf/squash/darts

and this year will be fencing. Around the house baking is my

preferred option, as it’s nice to share the results out of the oven

with friends & colleagues alike.

Contact details: PH: 08 6270 4115

MembershipThis year is the best year to join the Professional Group in your

industry. The Council are busy making changes and developing

new ways to bring the industry to the members in theses

challenging and changing times. We have a Linked In Group,

Facebook Page and Credit Network all great opportunities

to get involved and network for career and professional

development. Also the personal networking at the functions is

excellent to get up close and personal with other members in

the great state of Western Australia and introduce yourself into

the Credit family. I have been a member for many years and

encourage all WA members to invite a work associate to come

along to a function to take a look and or pass their details on so

we may post out some information. Look forward to seeing you

at our next function.

– Warren Myers MICM, Membership Co-Chair


Divisional Partners




National Partners

aicma r o u n d t h e s t a t e s new members


NEW SOUTH WALESOltan Akdogan Austral Mercantile Collections Pty Ltd

Val Baynes Austral Mercantile Collections Pty Ltd

Nicole Bennett Shield Mercantile Pty Ltd

Lyndal Bowen Austral Mercantile Collections Pty Ltd

Damien Brunell Austral Mercantile Collections Pty Ltd

Aura Caecilia Austral Mercantile Collections Pty Ltd

Xue Chen C and C Cabcare Pty Ltd

Stephanie Chisesi Goodman Fielder Limited

Robert Claggett Austral Mercantile Collections Pty Ltd

Phylline Comia Austral Mercantile Collections Pty Ltd

Matthew Davis Breene & Breene Solicitors

Julia Fawcett Southern Steel Group Pty Ltd

Debbie Forrest Austral Mercantile Collections Pty Ltd

Simon Fulford Goodman Fielder Limited

Jenny Fulton E-Credit Management Pty Ltd

Alisa Gluhic Austral Mercantile Collections Pty Ltd

Venn Grasso Austral Mercantile Collections Pty Ltd

Rebecca Gray Veda

Martha Haddad Sony DADC Australia Pty Ltd

Fareeda Hassan Austral Mercantile Collections Pty Ltd

Charlie He Goodman Fielder Limited

John Hilton The University of New South Wales

Cathy Howison Goodman Fielder Limited

Frosina Jovanova GrainCorp Operations Limited

Colm Kiely Austral Mercantile Collections Pty Ltd

Manoj Kumar Goodman Fielder

Lashini Kuruppu Hilti (Aust) Pty Ltd

Prashant Lal Ozforex Pty Limited

Rajesh Mahabir Austral Mercantile Collections Pty Ltd

Phinren Nop Austral Mercantile Collections Pty Ltd

Melinda O’Brien Sony DADC Australia Pty Ltd

Stewart Packham Goodman Fielder Limited

Sudha Pannirselvan Hilti (Aust) Pty Ltd

Deborah Pascoe Ruralco Holdings Pty Ltd

Vicki Pereyra Sony DADC Australia Pty Ltd

Christine Quinn Shield Mercantile Pty Ltd

Dilini Ratnayake Austral Mercantile Collections Pty Ltd

Elaine Robinson Austral Mercantile Collections Pty Ltd

Katrina Sanders GrainCorp Operations Limited

Sarajane Scott Sony DADC Australia Pty Ltd

Arun Lata Sethi Sony DADC Australia Pty Ltd

Louisa Sijabat Vincents Chartered Accountants

Jamila Subedhar Sydney Water Corporation

Vishnu Subramaniam GrainCorp Operations Limited

Laura Sullivan Hilti (Aust) Pty Ltd

Terrence Topham Austral Mercantile Collections Pty Ltd

Anitra Watkins Austral Mercantile Collections Pty Ltd

QUEENSLANDAnna Funnell McCarthy Durie Lawyers

Melinda Grob Randstad

Julie Harper Acrow Formwork & Scaffold Pty Ltd

Catherine Hodgson Hume Doors & Timber (Qld) Pty Ltd

VICTORIA/TASMANIALynette Andrews Techtronic Industries Australia

Jay Bower PPG Industries Australia Pty Ltd

Donna Brown Clublinks Pty Ltd

Vanessa Corby Treasury Wine Estates Australia Ltd

Isa Darrage Austral Mercantile Collections Pty Ltd

Sandy Duric Hallmark Cards Australia Limited

Ahmad Durrani Treasury Wine Estates Australia Ltd

Abraham Erenbolm Cash Gap Finance

Adrian Hearne Treasury Wine Estates Australia Ltd

Brendan Lloyd Austral Mercantile Collections Pty Ltd

Lynne McEwan Treasury Wine Estates Australia Ltd

Stephanie McGrath Robert James Lawyers

Amaran Navaratnam Recoveries Corporation Ltd

Timothy O’Donnell Austral Mercantile Collections Pty Ltd

Ella Pekaric Recoveries Corporation Pty Ltd

Browyn Richards Treasury Wine Estates Australia Ltd

Cheryl Richardson Skilled Group Ltd

Zoran Trifunovic Skilled Group Ltd

Valerie Walsh Austral Mercantile Collections Pty Ltd

Melanie Yarnall Austral Mercantile Collections Pty Ltd

SOUTH AUSTRALIAKyla Breslauer Austral Mercantile Collections Pty Ltd

Thuy Dinh Vu Austral Mercantile Collections Pty Ltd

Danielle Hunter Austral Mercantile Collections Pty Ltd

Asha Schuster Austral Mercantile Collections Pty Ltd

Hayley Sobey Austral Mercantile Collections Pty Ltd

David Vlahos Hudson Lawyers

WESTERN AUSTRALIAEmma Carbone Austral Mercantile Collections Pty Ltd

Tara Connolly Valenti Lawyers

Jeet Dhillon Austral Mercantile Collections Pty Ltd

Hane Hane-Nou Austral Mercantile Collections Pty Ltd

Stefanie Hessemann CGU Workers Compensation

Matthew Noonan-Crowe Valenti Lawyers

Philip O’Donnell Valenti Lawyers

Adriana Ottervanger Austral Mercantile Collections Pty Ltd

Ruth Sudheera Austral Mercantile Collections Pty Ltd

Lacy Swan Valenti Lawyers

Kim Valenti Valenti Lawyers

Jane West Capricorn Society Ltd

Mark Williams Valenti Lawyers

Corrina Wright Austral Mercantile Collections Pty Ltd

NEW MEMBERSThe Institute welcomes the following credit professionals who were recently admitted to membership in November, December 2014

and January 2015.

See you at AICM’s

Sofitel Sydney Wentworth Hotel

14th - 16th October 2015

ConferenceConference2015 National2015 National

2015