• Insolvency Insider Australia
  • Posts
  • Cross-Com­pa­ny Secu­ri­ty and Liq­uida­tor Chal­lenges: Full Fed­er­al Court Restores Cer­tain­ty

Cross-Com­pa­ny Secu­ri­ty and Liq­uida­tor Chal­lenges: Full Fed­er­al Court Restores Cer­tain­ty

Author

Insolvency Insider
October 16, 2025

Gerald Carides of Swaab explains that the Full Federal Court in CEG Direct Securities v Cooper [2025] FCAFC 47 has confirmed that cross-company securities within corporate groups are not automatically voidable, ruling that liquidators must prove a transaction was objectively unreasonable and that properly documented, commercially justified group securities will generally stand.