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Volume 23, No 3 March 2016

2016

How to cater for change

Change –

no small thing

Evolution of

the Credit

Profession

Where will

the risk be?

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Volume 23, Number 3 – March 2016

Message From the President 6

Portfolio Update 8By Greg Young

Credit ManagementHow Credit Management shook its boring tag 9

What’s in a name 10By Alan Harries

Are you collecting your money right 12By Adrian Hunter and Robyn Erskine

Three risks to monitor in 2016 14By Maire Albert and Julien Marcilly

Change – no small thing 16By Barry Urquhart

ASIC releases report on debt management firms 18

Veda acquires EDX 19

Fraud and the impact on Trade Credit 20By Imelda Newton

LegalThe obligation of the insolvency practitioner to act 21 honourably and fairly in the administration of insolvent estates By Keith Bennetts

Electronic contracts – what’s new? 24By Peter Mills

Keith Bennetts

21

Adrian Hunter

Barry Urquhart

12

16

Alan Harries

10

Peter Mills

Greg Young

24

7

NSW Division: Pinnacle Awards – Joanne Mannah and Andrew Spring.

Qld Division: Simon Dawson, Nick Combis, Arthur Tchetchenian and Bruce Patane.

SA Division: Amanda Campbell, AJ Jaramillo, Rod Sims, Trevor Goodwin and Judy Verhoeff.

35

38

42

Vic/Tas Division: David Condello with Glenn Thomas.

WA/NT Division: Lauren Marsh, Raffaele Di Renzo, Lauren O’Hearn.

45

48

CREDIT MANAGEMENT IN AUSTRALIA • March 2016

EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or 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 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065

PO Box 64, St Leonards NSW 1590

Tel: 1300 560 996, Fax: (02) 9906 5686

Email: [email protected]

EDITOR/PUBLISHER

Nick Pilavidis | Email: [email protected]

CONTRIBUTING EDITORS

Arthur Tchetchenian NSW

Stacey Woodward Qld

Gail Crowder SA

Warren Meyers WA

Donna Smith Vic/Tas

ADVERTISING MANAGER

John Field FICM, CCE, ACPM, Ph: 1300 560 996

Mob: 0412 732 831, Email: [email protected]

EDITING & PRODUCTION

Anthea Vandertouw | Ferncliff Productions

Tel: 0408 290 440 | Email: [email protected]

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 3, Suite 303, 1-9 Chandos Street, 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, 2015.

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Statutory Trustee sale – creditor wins 26By Chris Cook

What is the threshold for suing a debtor 28By Roger Mendelson

AICM Training news 30

Can we Help? 33Unfair contracts

Around the StatesNew South Wales 35Queensland 38South Australia 42Victoria/Tasmania 45Western Australia/Northern Territory 48New Members 51

2016 Conference Promotion 52

For advertising opportunities in

Credit Management In Australia

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FICM, CCE, ACPM

Ph: (02) 9906 4563

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aic

mFrom the President

6 CREDIT MANAGEMENT IN AUSTRALIA • March 2016

Last year was an absolute cracker and this

year will be even better.

In 2015 we launched our Webinars and

followed this through in February with the

first of the 2016 National Partners Webinar Series – An

Economic Update with Stephen Koukoulas. These are free

to members although you are required to register for the

Webinar. We will then provide a copy to you immediately

following the broadcast. The Economic Webinars are now

held quarterly.

We have been working on our website and in the last

days of February released the long overdue and very

substantial upgrade which you will find more informative

and easier to use.

In late 2015 we released our animated video “Are you

a credit professional?” and this month we are continuing

our electronic campaign with our Ebook titled “10 signs an

account is heading towards bad debt, and how to stop it”.

A must read for all credit professionals and an important

addition to your library and training manuals.

The CCE exam is being made more accessible

and is being held across 2 weekends in March. Every

competent Credit Professional should have no difficulty

in attaining this confirmation of their knowledge and

skills and enhance their standing in our profession. If

you do nothing else this year to develop and promote

yourself simply set aside a few hours to complete your

CCE.

The first of our 2016 golf days was held in Victoria in

February. It was a full house with 144 credit professionals

attending at Southern Golf Club. This will be followed later

this year with events in Sydney and on Queensland’s Gold

Coast. The latter being in conjunction with the National

Conference.

We hold 9 of our monthly board meetings by

teleconference and the remaining 3 are face to face. Our

dour financial position has seen the latter be one day

FIFO meetings in Sydney. However our financial position

has improved very solidly over the last 3 years and we

are now able to improve board accessibility through the

holding of board meetings in each Division every second

year. We met in Melbourne in February and took the

opportunity to catch up with many Victorian members at

the post golf day function. Their feedback was invaluable.

At February’s Saturday Board meeting we continued

our programme of openness, Divisional interaction,

development and succession planning by inviting Lou

Caldararo from the Victorian Council and Roger Masamvu

from the Queensland Council to join us for the day. Lou

is the current Victorian President and Roger is a former

Queensland Young Credit Professional of the Year Award

winner and Queensland Councillor.

Following 2015’s successful launch of WinC (Women

in credit) events we are continuing with this popular

programme and we are excited to announce that thanks to

the support of Veda (Premium Sponsor), NCI and Results

Legal (Supporting Sponsors) the WinC events will now be

held in all divisions in 2016.

The National Conference is being held from October

12 – 14 at the new Sea World Resort Conference and

Convention Facility adjacent to Sea World theme park

on the Gold Coast. The programme is well advanced as

we take the learnings from the Sydney conference and

feedback from delegates and members to provide you

with the best information, education and networking

experience that can be packed into 3 days.

Plan now to get yourself there

z Include it in your annual budgets when you complete

them over the next few months

z Incorporate it as reward and recognition for achieving

your KPI’s or targets

z Add it to your training and development programme

Grant Morris CCE

Australian President

From the President

aic

m

March 2016 • CREDIT MANAGEMENT IN AUSTRALIA 7

Use it as motivation and reward for your staff ie offer to

send them along too, when they hit their targets.

The cost of the conference is far less than what

good organisations spend on the development of their

employees.

On the legislative front the Treasury Legislation

Amendment (Small Business and Unfair Contract

Terms) Bill 2015 received Assent in November 2015

and comes into force in November this year. It amends

the Australian Securities and Investments Commission

Act 2001 and Competition and Consumer Act 2010

to extend the unfair contract term protection to

businesses with less than 20 employees agreeing

to standard form contracts valued at less than the

prescribed threshold.

NSW Barrister Geoffrey McDonald and Rebecca

Ross from Gavin Parsons & Associates gave a great

presentation in February at the annual “Developments

in Law for Credit Managers” symposium held in Sydney

and spent some time on the small business and unfair

terms changes. The changes to extend unfair contract

terms to small business will be an interesting challenge

for credit professionals and be the subject of a number

of AICM events around the country this year. Stay with

us and stay up to date.

Last month Jan Rann retired from the AICM’s

Executive Office. Jan has been with us for 23 years and

provided support and assistance to many of us in her

own quiet but highly professional way. She is a true

lady who is unflappable in all situations. I thank Jan for

the tremendous assistance she has provided to myself

and all members over such a long time and I especially

thank her for the patience and kindness she has shown

to this old duffer. I know I speak on behalf of the AICM

office team and all present and past members in

wishing Jan a very long and happy retirement.

Grant’s Soapbox

We have received a lot of support of our proposed lobbying

of the Attorney-General and ARITA for changes to legislation

and practices in

z The period in which preference claims can be made ie the

3 year “statute of limitations” on making preference claims

is too long and should be shortened to a year or less.

z The recovery of preferential payments and those

Liquidator recovered funds not being paid in dividends

to unsecured creditors or any class of creditor for that

matter.

z Unsecured creditors who are genuinely at arm’s length

being subject to preference claims.

z Spurious and inflated preference claims from Liquidators

ie claiming $700K and settling for $10K.

z Fees charged by Administrators, Liquidators and

Receivers & Managers ie specifically annual increases of

5 – 10% and more.

Many feel the preference claim time should be a year or less

especially when you consider

z Administrators make a decision on the financial viability

of the company within a month,

z The speed of the electronic age

z The length of bankruptcies

The lobbying is now being actioned by James Neate and our

Legal Affairs portfolio with lobbying of the Attorney-General

to be our first action. James will provide an update on our

action in the next issue of this magazine.

I hope we see you at an AICM event soon as you support

the Institute which supports you.

– Grant Morris

[email protected]

Ph: 0407 405 198

aicm Portfolio Update


collections skills, law, legislation,

human resources, accounting

principles and general management

skills. Successful CCE candidates are

required to re-certify every three years

thus confirming the currency of their

credit management skills.

The CCE qualification is intended

to improve a CCE’s credibility and

stature amongst his/her peers and

senior company management by

confirming their credit management

skills and knowledge and their ongoing

commitment to the maintenance

of those skills and knowledge in a

changing business, financial and legal

environment. It should also act as

a catalyst for staff development by

encouraging managers and potential

managers to expand their knowledge

beyond their particular areas of

specialisation, whilst continuing to

learn and grow in the marketplace.

The CCE qualification aims

to improve opportunities as it

demonstrates to employers and other

industry practitioners that a CCE is

motived and accomplished, together

with being up to date in knowledge

and practice of credit management

skills. The aim of the CCE program

is to recognise and set standards

for excellence and professionalism

of individuals operating in the credit

industry. The AICM has a CCE policy

and procedure which establishes

minimum standards and guidelines

for those who both participate in and

administer the CCE program.

YCP Portfolio The Young Credit Professional of the

Year Award, has, since its inception,

been held in the highest regard within

the credit profession as a symbol of

excellence. It has brought valuable

career rewards to state and national

winners as well as value adding to the

organisations they work with.

Credit Professionals under the

age of 30 as at 30 June each year are

eligible to enter. Note: membership

is not a requirement to enter. The

award is designed to honour young

credit professionals who pursue and

achieve excellence within the credit

field. The award is an AICM initiative

to seek out and recognise the best of

Australia’s young credit management

professionals.

Each State division seeks

applicants. From these nominees a

shortlist is selected for formal judging.

The winner is announced at the

YCP Awards Dinner and goes on to

represent their Division at the National

Awards.

As National Director for

Queensland and Director of the CCE

and YCP Portfolios, Greg Young,

Partner of Forbes Dowling Lawyers, is

always keen to engage with members

regarding any issues concerning those

portfolios. Feedback from members

is vital to the ongoing management

of and improvement of the CCE and

YCP Portfolios. Greg welcomes any

direct contact on 07 3025 3723 or at

[email protected].

CCE and YCPAs part of an occasional series, we profile each National Portfolio to better inform members of the role of the National Board, its policy objectives and the work undertaken for members’ benefit.

Greg Young

CCE Portfolio The Certified Credit Executive

program is designed to be the

highest designation of recognition

within the AICM. Members achieving

this qualification demonstrate the

knowledge and expertise required

to manage the credit function at

an executive level. The program is

available to institute members only. It

is AICM’s commitment to maintaining

professional excellence in the field of

credit management.

Candidates are required to have

attained a minimum professional

and educational standard and

this is demonstrated through the

accumulation of the required number

of CCE points. Candidates are to be

proficient in the areas of credit and

The Young Credit Professional of the Year Award, has, since its inception, been held in the highest regard within the credit profession as a symbol of excellence.

Credit Management


Credit management function

had to change. The modern credit

manager is a new breed: part

salesperson, part statistician, part

accountant. This makes the position

not only more diverse, but exciting

too.

Thinking like a salespersonRisk monitoring is still vital to the

function, but today’s credit manager

also needs to spot opportunities

to maximise revenue. They need to

think like a salesperson and help the

business grow by considering the right

sale for each customer, exploiting

opportunities without taking an

unnecessary risk. This mindset is much

more positive than a risk-focused

stance that mostly considers the

negatives of a customer: cash flow

troubles, high debt and a troubled

market. It makes for a more involved

and enthusiastic credit manager.

Close collaboratorsThe new approach also needs the

finance team to work more closely

with its peers in sales and marketing

so the goals of each are aligned.

Information on credit scoring should

be fed to the sales team so they can

focus their efforts on up-selling and

cross-selling to the customer profile

that offers the most return for their

risk. The same data can also be used

by the marketing team to help them

put the company in the minds of

the ideal customer. Working closely

with these functions should see their

knowledge rub off on the credit

manager, broadening their skills while

adding variety to the role.

A proactive not reactive approachWorking in harmony with other

departments and spotting and

exploiting opportunities means

today’s credit manager is proactive

rather than reactive. Easy access to

tools such as big data, automated

actions and analytics models all help

them to take a predictive approach.

Risks can be identified when there is

time to react, and opportunities can

be spotted further ahead. There is

little sitting back to wait and see, as

credit managers have what they need

to be dynamic and hands-on.

A more valuable assetWith a longer list of responsibilities

and a greater importance placed on

the role, credit managers are a far

more valuable asset to a business

than they were before. Some depend

on them to advise on the stability

of suppliers, while others count on

their knowledge of customers and

the valuable marketing insights this

can offer. With business development

also among their remit, a credit

manager’s actions will be of interest

to shareholders too. Greater job

satisfaction is the outcome, as those in

the role can be sure they are bringing

greater value to the business. n

Reproduced from Nick Drivers Blog at https://www.graydon.co.uk/

How credit management shook off its ‘boring’ tagWe’ll admit that a typical credit

management job description from

the past didn’t make for very exciting

reading. Yesterday’s credit manager

was heavily focused on mitigating

risk by picking through high volumes

of company data to decide the

creditworthiness or otherwise of

customers. The role was laborious

and repetitive, otherwise known

as boring. Then things started to

change.

Working in harmony with other departments and spotting and exploiting opportunities means today’s credit manager is proactive rather than reactive.

Credit Management


AICM’s CEO Nick Pilavidis recently

asked me to comment on the

emerging trend in the UK away

from the use of the term “debtor”

to “customer” and whether there

was any similar change underway in

Australia.

Responding to this request

caused me to reflect that many in the

Australian collections industry over

recent years have been confused as to

what is the appropriate contemporary

term to use when referring to the

party being followed up for payment

of an outstanding account.

Terms like “debtor” and

“creditor” seem outdated now

despite valid origins relating to how

transactions have been described

within accounting conventions.

Accountants still use those terms

but the wide adoption of business

software applications such as

MYOB and Xero has changed how

others describe those transactions.

Software developers keen to simplify

terminologies for persons not trained

as bookkeepers to understand

transactions being recorded made

some changes such that we have seen

“Debtor” replaced by “Customer” and

“Creditor” replaced by “Supplier” –

similarly Accounts Payable” became

“Pay Bills” whilst “Receive Payments”

replaced “Accounts Receivable”.

Regulatory languageA review of current regulations fails

to reveal any change to descriptors

being adopted by industry regulators.

Interestingly, the ACCC/ASIC Debt

Collection Guideline1 which is the most

important compliance document for

collectors and creditors alike, in its

Glossary of Terms defines “Debtor”

as “a natural person obligated or

allegedly obligated to pay a debt” but

does not include any definition for

either “Customer” or “Consumer”.

Potentially, the introduction

of the Australian Consumer Law

in 2010 (the ACL) presented an

opportunity to introduce a redirection

for consistent descriptors to be

used but I discovered its definition

of “Consumer” within this legislative

regime was not all embracing.

The National Consumer Credit

Protection Act 2009 includes a

definition for “Consumer” as a “natural

person or a strata corporation” but

has no definition for “Customer”.

The National Credit Code which

is Schedule 1 of that Act defines

“Debtor” as “a person (other than a

guarantor) who is liable to pay for

(or to repay) credit, and includes a

prospective debtor”.

Trend away from “debtor”Despite the lack of change within

legislation and regulations impacting

on debt collections, there is

nevertheless a trend in Australia away

from using the term “debtor”.

Such a trend however is not

without some issue for those in the

collections industry. For example,

in moving away from using the

descriptor “debtor’ a problem for

contingent collectors acting as an

agent for principal creditors is that the

term “customer” from the collector’s

own perspective refers to the party

it is acting for. The adoption of the

term “customer” within the collector’s

operations and records when dealing

with and referring to an individual or

business debtor owing monies to its

principal seems wrong and potentially

What’s in a name?Alan Harries* of the Institute of Mercantile Agents reviews changes in the language and tone of dealings between collections and individuals in debt.

Terms like “debtor” and “creditor” seem outdated now despite valid origins relating to how transactions have been described within accounting conventions.

Alan Harries

Credit Management


creates confusion as to which party is

being referred to.

In a recent UK article (by

Sean Feast, Managing editor of

the Chartered Institute of Credit

Mangements Magazine) about

the trend away from “debtor”,

an observation was made that

“a company being labelled as a

debtor appears to be viewed as less

confrontational than an individual

being identified in the same way” –

this has similar resonance in Australia.

The trend in Australia over

recent years has been away from

using “debtor” and instead the term

“consumer” rather than “customer”

has increasingly been adopted

whenever collectors and agents

refer to individuals and businesses

more traditionally known to them

as debtors. This trend appears to be

driven more by a change of attitude

and expectations rather than just

being a case of semantics. Some

reasons for this change include:

z Banks and other financiers

directing the use of the descriptor

for their customers

z The introduction of the National

Consumer Credit Protection Act

2009

A similar change has occurred in the

US where collectors now talk about

“connecting with consumers to

resolve accounts” rather than “chasing

debtors to pay bills”.

Setting the toneCollectors understand their role today

is all about communicating with

consumers – this involves engaging

effectively to understand what they

want and need in order to resolve the

specific outstanding debt.

By itself changing the name or

descriptor adopted when referring

to the individual owing the account

away from the traditional “debtor” will

count for little unless the collector’s

approach allows the individual to feel

respected and to maintain dignity in

discussions. An effective approach

includes the collector being aware of

the individual’s situation and offering

where appropriate assistance and

genuinely seeking an achievable and

affordable solution for the individual

The continuing challenge for

collectors is how to best engage

effectively whilst meeting the

regulatory requirements of what

to say and when to say it and at

the same time avoiding the risk of

misunderstandings which can arise

when the parties to the conversation

can’t see the other’s body language.

Another impediment to establishing

effective engagement is often the

strong negative views some in the

community hold about the collections

industry and processes.

More than ever there is a need for

collectors and agents to ensure the

right tone is achieved for conversations

so as to deliver effective outcomes –

a change in the name or descriptor

for the party being contacted to pay

a debt or account to something which

the individual sees as positive and

respectful is a good and subtle step

towards developing and maintaining

respectful conversations.

Compliance obligations and

expectations of collectors mean it is

not sufficient to communicate so as

to be understood but increasingly

to communicate in a manner so it

is impossible to be misunderstood!

Setting the right tone in conversations

between collectors and consumers

will assist to avoid unhelpful

misunderstandings. n

*Alan Harries is CEO of the Institute of Mercantile Agents and can be contacted at [email protected]

FOOTNOTES:1 ASIC Regulatory Guide 96: Debt collection guideline for collectors & creditors published 10 July 2015

You have what it takes to be the2016 Young Credit Professional.

Now it is your chance to be in the running for the 2016 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 2016 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 Sea World

on the Gold Coast, on 12–14 October 2016 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

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

Credit Management


New guidelines introduced in July

2015 by the Australian Competition

and Consumer Commission (“ACCC”)

and the Australian Securities and

Investments Commission (“ASIC”)

impact upon how creditors (or their

agents) go about collecting debtor

arrears.

The Debt Collection Guide (Guide)

is designed to help debt collectors

or those who use external collection

agencies to understand how the

Commonwealth Consumer Protection

Laws (“CCP Laws”) apply to them.

It is important to understand

that under the CCP Laws, a creditor

may be responsible for their agent’s

collection activities even if the agent

acts in a way that is contrary to an

agreement or understanding between

the creditor and agent about how the

collection is to be undertaken.

A creditor may also remain liable

for conduct regarding a debt despite

having sold or assigned the debt.

Whilst the Guide does not have

legal force, both the ACCC and ASIC

are encouraging businesses engaged

in debt collection to follow the Guide

and incorporate these into staff

training.

What is in the Guide?The Guide provides 24 guidance

areas for reference when a creditor

or their agent is seeking to collect an

outstanding debt. Various case studies

or practical examples are provided

to assist the reader in interpreting

the Guide. The importance of this is

that it gives strong guidance on what

a creditor or their agent should and

should not do if they wish to minimise

the risk of breaching the CCP Laws.

These steps range from making

contact with a debtor (including what

constitutes ‘contact’) to the types

and frequency of contact that can be

made to repayment negotiations and

complaints handling.

An overview of the applicable CCP

Laws is also provided in addition to

other Statutory and Common Law

obligations and remedies.

Some of the key takeaways

include:

z When making contact with a

debtor, ensure you are dealing with

the debtor and that you identify

yourself (i.e. confirm their identity

and do not misrepresent your

identity).

z If the debtor advises they are

unable to pay, you are entitled

to make reasonable enquiries

regarding their financial position,

particularly if they are seeking to

make repayments over time.

z Legal obligations under the

Privacy Act 1988 attach to the

information collected from or

about a debtor.

z Do not disclose information about

the debtor to third parties (e.g. if

an individual this includes work

colleagues or spouse).

z Avoid contacting the debtor via a

method that they have specifically

requested not be used.

z Contact with a debtor must be

made during reasonable hours

(e.g. 7:30am to 9pm).

z Excessive contact with a debtor

may constitute undue harassment

(e.g. more than 3 times per week).

z A debtor is entitled to respect and

courtesy and contact is to be free

of intimidation or humiliation.

Are you collecting your money right?By Adrian Hunter and Robyn Erskine*

Adrian Hunter

Robyn Erskine

Credit Management


z The Guide considers face-to-face

or “field” visits to be an option of

last resort (particularly if seeking

repayment from an individual at

their workplace).

z Do not trespass.

z If a debtor has an authorised

representative (e.g. financial

advisor, solicitor or carer) then

you should no longer contact the

debtor directly.

z You should maintain accurate

records of your dealings and

communications with the debtor.

z Evidence of the debt being

pursued should be provided on

request.

z Care should be taken when

making representations about the

consequences of non-payment or

the legal status of the debt.

Does this stop me getting my money backThe short answer is No. The Guide

does not impact upon the legal

enforceability of debts that a debtor

owes to a creditor. This Guide is

mainly concerned with non-court

debt recovery processes and informal

collection activities before a court

action is commenced or after a court

judgment.

The Guide does not limit any right

creditors (or your client) may have to:

z take legal action to collect a debt;

z conduct legal repossession

activities and other legal

enforcement of legitimate security

interests;

z seek and obtain pre-judgment

remedies, e.g. orders to prevent

the removal or transfer of property

from the jurisdiction;

z enforce judgment through a court

process – including examination

hearings, instalment orders,

orders for the seizure and sale

of property, garnishment or

attachment orders; or

z undertake all necessary

procedures (e.g. for serving

documents) associated with these

actions.

However, the Guide does state

that you must not threaten action

(legal or otherwise) that you are not

legally permitted to take, do not

have instructions or authority to take,

or you have no intention to take.

How legal action is threatened or

taken can, in certain circumstances,

amount to misleading or deceptive

conduct, unconscionable conduct

or harassment. It also reinforces that

when seeking to collect a debt a

creditor also must not misrepresent

their legal entitlement to seize goods.

Outside of any contractual rights

that may exist between a customer and

supplier of goods on Retention of Title,

the Personal Property Securities Act

establishes the rights and obligations

that suppliers of goods on Retention

of Title must comply with in order to

repossess the supplied goods in the

event that the debtor does not pay.

What if a debtor doesn’t pay?If a debtor doesn’t make payment and

you are looking to either have them

made bankrupt or put into liquidation,

please contact us as we may be

willing to act for you and all creditors

as either the bankruptcy trustee or

court appointed liquidator.

What if the debtor collapses after I get paid?If a debt is recovered and then within

six months of receipt of that payment

the client either goes bankrupt or into

liquidation, you may be forced to repay

these funds as an unfair preference to

the liquidator or bankruptcy trustee.

Unfair preferences are payments

or transfers of assets to a creditor

that gives them a ‘preference’ or

advantage over other creditors. (i.e.

they are paid instead or in preference

to another creditor as a result of the

action they took in attempting to

recover their debt).

The recipient of an unfair

preference must have suspected or

had reason to suspect that the debtor

was insolvent at the time of when the

payment to them is made.

Often this knowledge accrues in

the mind of the creditor as a result

of the collection process they have

undertaken and the information

provided to them during this process

by the debtor.

What happens if a liquidator demands I repay funds?One of the first actions you should

take before corresponding with the

liquidator or bankruptcy trustee is talk

with an expert in this field.

At Brooke Bird we have been

working with creditors for over 50

years in assisting them to defend

against the predations of liquidators

and trustees.

There are statutory defences

available that creditors need to

consider in addition to conducting

their own internal investigation into

what they know regarding the debtor.

It is important to understand

the strength of your defence before

liaising with the liquidator or trustee.

It may be that the demand you receive

is an ambit claim hoping to elicit an

uneducated payment from you. n

* Both Robyn Erskine and Adrian Hunter are Official Liquidators within the practice of Brooke Bird – Restructuring, Turnaround and Insolvency Specialists. Ph: (03) 9882 6666E: [email protected]

There are statutory defences available that creditors need to

consider in addition to conducting their own internal investigation into

what they know regarding the debtor.

Credit Management


A new year of political uncertaintiesA cautious approach to evolving

country risks will be necessary in

2016. In an environment of soft global

growth, forecast by Coface to be

2.7% (after 2.5% in 2015), the risks

that emerged in 2015 are expected to

remain this year. At the forefront are

the political tensions gaining ground

in both advanced and emerging

countries.

The elections in the United States

and, above all, the risk of a “Brexit” by

the United Kingdom (two advanced

countries that outperformed the

eurozone in 2015), are likely to

weigh on business confidence. In the

emerging world, uncertainties remain

high in the Middle East. The risk of

terrorism could lead to stronger

nationalist movements. According

to Coface’s political risk index1,

Turkey and Brazil particularly stand

out, due to their growing political

instability between 2007 and 2015,

following the significant deterioration

of their economic situations. Brazil,

whose political crisis and recession

are expected to continue in 2016,

thus saw its country risk rating

downgraded for the second time in

less than a year, to C.

Advanced countries: recovery under pressureOverall, advanced countries will

see moderate growth in 2016,

estimated at 2% by Coface. The main

concerns include their dependency

on commodity prices, the Chinese

slowdown and financial market

volatility.

The trend of low barrel prices

should continue in 2016, due to the

continued surplus of oil supply - in

part attributable to Iran’s return to the

market. Heavily affected by the drop

in oil sector investment, resulting from

the decline in its income, Canada has

fallen from the best risk category and

is now assessed A2. The continued

decline in oil prices has, however,

had a beneficial effect on households

and businesses in certain advanced

countries. With the exception of Japan

and Italy, the fall in energy bills has

helped to revive corporate investment,

particularly in Spain and the United

Kingdom.

Japan is also among the potential

victims of the more-pronounced-

than-expected Chinese slowdown,

given that 18% of its exports are

destined for China. Weak growth

(estimated at 0.9% for 2016),

the persistent risk of deflation

and the indispensability of fiscal

consolidation, explain the placing of

its A1 assessment under negative

watch. Not surprisingly, the decrease

in demand and in tourism from

mainland China will continue affect

activity in Hong Kong and Taiwan,

also under negative watch.

In the eurozone (with 1.7%

growth expected in 2016), the

situation of companies is gradually

improving. This is evidenced by

the insolvency statistics for France,

Germany, Italy (a decrease of

between -3.5% and -5% over the

first nine months of 2015 compared

with the same period in 2014) and

especially Spain (-26%). Italian

growth will be supported by

domestic demand, which will benefit

Three risks to monitor in 2016Three risks to monitor in 2016: weak growth, political tensions and company debts in emerging economiesz Advanced economies: many causes for concern, including financial market

volatility, cheap oil and the Chinese slowdown

z Emerging countries: in addition to sluggish growth, increasing indebtedness of companies

z Increased political risks likely to affect business confidence in all regions

By Maire Albert and Julien Marcilly

Credit Management


points more than in 2008. Following

China are Turkey (+30 points), Brazil

(+17 points), Russia (+14 points),

and Malaysia (+11 points). Turkish

companies, which have one-third of

their debt denominated in US dollars,

are proving to be among the most

exposed to currency risks. The main

glimmer of hope in the medium term

concerns the gains in competitiveness

resulting from recent depreciations of

emerging currencies.

In this context of increased risks

for companies, Coface is issuing

a one-notch downgrade of the

assessments of several emerging

countries that were already under

negative watch. These include:

z Algeria (B) and Gabon (C), due to

the low price of hydrocarbons

z South Africa (B), negatively

affected by sluggish growth and

growing social tensions

z Tanzania (C) and Madagascar (D),

where growth is constrained by

political uncertainties n

Written by Coface Group Economists:– Maire Albert, Economist,

Head of Country Risk– Julien Marcilly,

Chief Economist

FOOTNOTES:1 Coface’s political risk index combines two

types of indicators: pressures from changes (inflation, unemployment, corruption control, etc.) which measure the intensity of socio-political frustrations in a given country and instruments of change (education, social networks, proportion of youth, role of women, etc.), which capture the ability of these societies to transform frustrations into political action.

CORPORATE DEFAULT PROBABILITY

A1: VERY LOW

A2: LOW

A3: ACCEPTABLE

A4: QUITE ACCEPTABLE

B: SIGNIFICANT

C: HIGH

D: VERY HIGH

Country under positive watch list

Country under negative watch list

Assessment either upgraded, or removed from negative watch list or placed under positive watch list

Country Country risk Country risk previous new

Hungary B A4

Italy B B

Latvia B B

Ivory Coast C C

Assessment either downgraded, or removed from positive watch list or placed under negative watch list

Country Country risk Country risk previous new

Hong Kong A1 A1

Japan A1 A1

Taiwan A1 A1

Canada A1 A2

Finland A2 A2

Namibia A3 A3

South Africa A4 B

Algeria A4 B

Bahrain A4 B

Kazakhstan B B

Brazil B C

Gabon B C

Tanzania B C

Zambia C C

Madagascar C D

from the return of confidence and

the progress in structural reforms.

This has led Coface to place Italy’s B

assessment under positive watch.

Excessive company indebtedness: a new malaise in emerging countriesThe situation for emerging countries,

where growth has halved in five

years (3.9% expected in 2016), is

further complicated by the growing

indebtedness of companies affected

by both the drop in commodity

prices and the highly expansionary

monetary policies which followed the

Lehman Brothers crisis. Only Central

Europe remains unaffected at this

stage. Hungary (whose assessment

improved by one notch, to A4) and

Latvia (B under positive watch) stand

out for their solid growth, supported

by household consumption, and

for increased exports to European

countries other rather than Russia.

According to Coface’s economists,

Chinese companies are among the

most indebted. Their debt represents

more than 160% of GDP and 60

Credit Management


Success in the introduction

of change is not difficult. It is a

consequence of detailed planning

and respect for the impact on and

perception of existing, prospective

and past clients.

Sadly, there is a long history of

negative and sub-optimal outcomes

as a result of change – big and small.

Causal factorsClearly, a majority of unsuccessful

change initiatives are derived from the

management, and more disturbingly,

marketing offices of companies,

including manufacturers, distributors

and retailers.

Greater knowledge, better

education, unbounded creativity,

originality and a marketing degree

do not guarantee success and market

acceptance.

Imposing and enforcing

change on consumer perceptions,

preferences and buying patterns is

fraught with danger and difficulty.

In such circumstances considerable

time, money and resources need to

be invested in the education and

re-education of those in the primary,

secondary and tertiary target markets.

Instant success is a rarity, if not a

myth.

Lessons to learnIt is refreshing to learn (and

reassuring to the owners, managers

and marketers of small businesses)

that major global corporations,

brands and product managers are

prone to falling short in successfully

implementing change. The frequency

of mistakes, shortcomings and

outright failures is high. The scale of

the consequences appears to be a

differentiating factor.

Cheers ...... to tearsFor some 15 years the largest selling

beer brand in Australia was Victoria

Bitter, “VB”.

The brilliance of the advertising

which featured the voice of the late

John Meillon resonated with Australian

drinkers and teetotallers alike.

A national market share of

between 12 and 14% was enjoyed

for an extended period of time until

someone decided to introduce a

low-alcohol option. That weakened

the presence and profile of the brand.

VB has slipped the ladder of

success to approximately 3-4% market

share.

The biggest selling beer brand in

Australia is now XXXX, once a regional

Queensland-based offering.

For global consumers the labelling

may imply that it targeted to illiterate

consumers. Not so. Although it

could be a strikingly adroit strategy

to impact among the 60%+ of

the world’s population who sign

documents with an X!

King of the roadFor decades the Holden 6-cylinder

Kingswood was Australia’s own family

motor car. Annual sales regularly

exceeded 150,000.

Given the vagaries of oil supplies,

and attendant price hikes, in the 1980s

and beyond it was noted that a trend

was emerging with the increasing

popularity and sale of smaller,

4-cylinder European cars.

Change – no small thingBy Barry Urquhart*

Barry Urquhart

Change is a big deal, particularly in

the current marketplace.

Whether it is self-generated

or imposed by external market

forces, change demands attention,

consideration, detailed analysis and

the formulation, documentation

and implementation of an integrity

strategy.

Incremental change and its

consequences, dictate the need for

respect. The scale of change differs

little in importance from the frequency

of that change.

In many, if not most instances,

all change is significant to

consumers. Accordingly, marketing,

communications, promotions,

merchandising, selling and service

initiatives need more than “tweaking”.

Credit Management


The decision was made – by whom

I do not know – that the Holden

Kingswood would be superseded

by the Commodore, with the brand

name Holden being removed or

de-emphasised.

Sales plummeted to around 80,000

per annum. It was a costly lesson. Most

changes come with consequences,

some larger than others.

Holden never recovered and will

cease production of motor vehicles in

Australia by 2017.

Wrapped upGlad Wrap is a constant in many

Australian kitchens.

A recent change in the packaging

and introduction of a new cutting

device hurt sales and a number of

customers. Revenue bled, so too

consumers, who could not effectively

use the innovative cutting device.

Appropriately, the new packaging

was promptly withdrawn, to the

delight (and well-being) of many

consumers.

The change to McDonald’s

product range with the introduction

of All-Day-Breakfast was hardly

a resounding success. It seems

consumers were happy to move

on from breakfast mid-morning.

McDonald’s franchisees found the

extended hours of a breakfast offering

was inefficient and impacting on

profitability and productivity.

In recent times, McDonald’s and

the broader fast-food sector have

been experiencing falling demand,

sales and squeezed profits.

The best change seems to be good

rather than fast ... consumer driven

rather than management rushed. The

margins for effort, like profits, can be

and are increasingly thin.

Change action plan fundamentals

z Identify, isolate and analyse the

demand factors for change

z Ensure customer drive, and

acceptance

z Differentiate wants from demands

– the former can create fads

z Formulate, document and

implement an integrated change

strategy

z Recognise and respect that to

consumers, all change is BIG n

*Barry Urquhart of Marketing Focus is a respected consumer behaviour analyst, business strategist and high impact conference keynote speaker.Mobile: 0419 835 555Telephone: (08) 9257 1777Email: [email protected]: www.marketingfocus.net.au

Credit Management


The research involved two phases:

z a qualitative analysis and mystery

shop of debt management firms

by BIS Shrapnel Pty Ltd.

z a survey on the involvement of

debt management firms acting

for consumers in Ombudsman

schemes covering the financial

services, telecommunications,

energy and water sectors.

Findings – qualitative analysis and mystery shop:

z fees and costs were opaque

making it difficult for consumers,

often in significant financial

hardship, to assess the cost

relative to the purported value.

z fees were often ‘front loaded’ –

that is, fees were payable before

services were provided thereby

increasing consumer commitment

through sunk costs.

z some sales techniques create a

high-pressure sales environment.

z little information was given about

important risks. Some firms had a

poor understanding of the relevant

law and the consequences of

particular strategies which may

lead to unsuitable services for

consumers.

Findings – Ombudsman survey data and analysis:

z a growing number of firms are

representing consumers at external

dispute resolution (EDR). This is

concentrated among a few large

players with an increasing number

of small firms entering the market.

z the disputes brought to EDR

schemes by debt management

firms relate almost exclusively

to arguments about the removal

of default listings on consumer

credit reports (despite the breadth

of other issues that can arise for

indebted consumers).

z while an increasing number of

consumers are being represented

at EDR by debt management firms,

this is not leading to more credit

reported related disputes being

found in favour of consumers.

“Where consumers go to debt

management firms, it is important

they understand what they are getting

and how much it will cost, so they

can decide if it’s worth it,” said ASIC

Deputy Chairman Peter Kell.

"The promise is always more

prominent than the price”, he said. “It

is hard to find information about fees

and they tend to be high, front loaded,

and not refunded if the promise isn’t

delivered.

“It’s also important for consumers

to understand that they have

alternatives to the use of these firms

that may be free of charge such as

financial counselling services.

“Many stakeholders have raised

concerns with ASIC and other

regulators about potential harms

posed by firms that may provide

unsuitable services, act in ways not

in the best interests of clients, or at

worst, engage in predatory conduct

leaving the consumer worse off,”

Mr Kell said.

ASIC releases report on debt management firms

While an increasing number of consumers are being represented at EDR by debt management firms, this is not leading to more credit reporting related disputes being found in favour of consumers.

ASIC recently released a research

report that aims to better

understand the debt management

industry in Australia and the

consumer experience in using

debt management firms. Debt

management firms promise to help

consumers in financial hardship or

with listings of payment defaults on

their credit reports.

The report, Paying to get out of

debt or clear your record: the promise

of debt management firms (REP

465), was commissioned by ASIC’s

Consumer Advisory Panel (CAP).

Credit Management


Whilst the ink is yet to dry on the purchase of

Veda by US credit bureau Equifax, Veda has

announced the acquisition of EDX, the experts in

Personal Property Securities across Australia and

New Zealand on 22 February 2016.

This acquisition strengthens Veda’s existing

offering across Personal Property Securities

registration and search. Established in New

Zealand in 2006 and expanding into Australia

following the introduction of the Personal

Property Securities Act 2009 (Cth), EDX offers

comprehensive registration, search, compliance,

and remediation services.

The EDX service includes ESIS,

Electronic Securities Information System, a

cloud based platform that hosts the Personal

Property Securities Register (PPSR) and related

details post-registration. This allows customers

to effectively manage and maintain their

registrations. In addition to this market-leading

securities management system, EDX brings to

Veda a network of independent brokers providing

Personal Property Securities compliance review

and advisory capabilities.

Nerida Caesar, Veda’s CEO said, “The

integration of Veda’s existing PPSR registration

and search capability with the EDX hosted

solution provides an even stronger offering for

our customers. It can help them to protect their

financial security interests in a more effective

way.”

The founders of the business, Kim Powell and

Mary Bayne, have created the market leading

platform and a successful business in Australia and

New Zealand. Kim Powell said, “We are excited

to take the business to the next level with Veda

through extending our expert services to Veda

customers and serving new customers with our

combined capabilities.”

Industry news

BackgroundDebt management firms promise to help consumers in

financial hardship or with listings of payment defaults on

their credit reports by:

z ‘cleaning’, ‘fixing’ ‘repairing’, ‘removing’ or ‘washing’

away default listings on credit reports

z developing and managing budgets

z negotiating with creditors, including lenders,

telecommunications companies , utilities companies or

debt collectors

z advising and arranging formal debt agreements under

Part IX of the Bankruptcy Act, 1966.

While the models are diverse, many debt management

firms operate one-stop-shop models offering a combination

of some or all of the above services.

The debt management industry has grown despite the

fact that consumers can freely access:

z their credit report and challenge an incorrect listing at

no cost.

z help from financial counsellors or community legal

services.

z independent ombudsman schemes to help resolve

disputes with lenders, telcos and utilities providers.

This suggests that there is a lack of consumer awareness

about the potential benefits of alternatives to debt

management firms.

There is no uniform regulatory framework for debt

management firms and barriers to entry are low or non-

existent. Consumers in financial hardship can be extremely

vulnerable and behavioural research shows that financial

stress can materially affect people’s ability to make good

decisions.

Case studiesThe report includes case studies, which demonstrate that

some consumers experience poor outcomes.

Tips for consumers in financial hardship or with credit or debt problemsTalk to your lender, telco or utility first about your

financial hardship or credit listing.

Talk to the free ombudsman scheme for help before

you pay a fee to a debt management firm.

Talk to a free and independent financial counsellor or

community legal services for help.

ASIC has information and guidance for consumers about

trouble with debt and credit repair on its MoneySmart

website. n

Source ASIC Media Release 21 January 2016 http://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-011mr-asic-releases-report-on-debt-management-firms/

Credit Management


Credit managers are experts at using various pieces of

information to make sound credit decisions but is enough

being done to detect fraud before goods are dispatched

and bad debts are incurred; not to mention the costs of

attempting to recover bad debts?

With fraudsters becoming more sophisticated, it’s

important for companies to protect themselves from fraud

and loss. Identity takeover has grown 59%1 in the past two

years which means it’s more important than ever to know

who you’re doing business with and proactively manage

the risk of fraud.

A recent fraud case

Background

We were recently made aware of a fraud case in the

trade credit industry:

z The fraudster applied for a new account using

a stolen identity. The applicant was posing as a

sole trader.

z The credit limit requested was under the

threshold for close due diligence to apply.

In other words, it’s likely the fraudster had

knowledge of commonplace thresholds.

z The application was approved.

z Building materials were immediately purchased

and dispatched.

z The “sole trader” did not pay.

z The investigation revealed that a stolen identity

had been used to secure the credit account and

goods could not be recovered.

Three ways to prevent fraudFraud detection methods used by major credit providers

such as banks and asset financiers are now available for use

by trade credit providers. The company in this case study

is currently implementing three different fraud prevention

processes into its customer on-boarding framework to

ensure they only deal with legitimate businesses, and you

can too. Here’s how:

1. Identifythepeopleyou’reabouttodobusinesswith

Verifying the identity of directors and sole traders at

the point of application (online or face-to-face) can help

minimise risk by ensuring you are doing business with a real

person, not a fraudster.

Veda’s identity verification service performs an identity

check in real time, in seconds, using up to 25 independent

data sources to confirm the person is who they say they are.

2. Runafraudassessment

Take identity verification one step further by running a

fraud assessment to determine the likelihood that an

application is an attempt at fraud. The assessment can tell

you if the person is using a stolen device, such as a laptop

or mobile phone, and if they have a history of fraudulent

behaviour.

3. Manageyourownrules

Develop your own fraud and identity verification rules

under a risk-based approach whilst maximising your

business objectives. n

*Imelda Newton is General Manager, Fraud & ID at Veda.www.veda.com.au

FOOTNOTES:1 Veda 2015 Cybercrime and Fraud Report

Fraud and the impact onTrade Credit

With fraudsters becoming more sophisticated, it’s

important for companies to protect themselves from

fraud and loss.

By Imelda Newton*

Legal


IntroductionThere is a fundamental principle

arising in the administration of an

insolvent estate. The insolvency

administrator is obliged to

demonstrate “right-mindedness”

and “fairness” in the course of the

insolvency process.

For example, on occasions a

payment received by the liquidator

of a company or trustee in bankruptcy

may have been made by mistake, such

that the party making the payment

in error may seek to have the funds

restored.

One option available to a claimant

in these circumstances is to invoke

the rule in Ex parte James. Under

this rule the essential argument is

that it is unreasonable and unfair for

the insolvency administrator to take

advantage of funds acquired in these

circumstances, irrespective of the

strict legal position.

At this stage it will be useful to

consider the nature and scope of the

rule in Ex parte James.

The nature and scope of the rule in ExparteJames Generally stated, the rule in Ex parte

James requires that a liquidator or

trustee in bankruptcy avoid invoking

strict legal rights where this would

result in outcomes contrary to ethical

standards of commercial fairness. As

the Court in Star v Silvia (No1) (1994)

12 ACLC 600 at 604 observed:

“The principle should be applied

to ensure that the liquidator does not

hold property where there are claims

of conscience against the property,

without recognizing those claims of

conscience.”

The following cases provide

examples of the operation of the rule

while also generating useful case

studies for trade credit professionals.

Application of the rule in ExparteJames in cases involving alleged unfair enrichment Re Paddington Town Hall Centre Ltd

(in liquidation) (1979) 41 FLR 239,

SC (NSW)

At the date of winding up, the

company had accounts with its

banker with credit balances totaling

$8,218 and loan accounts with a debit

balance of some $70,000. Following

his appointment the liquidator

requested the bank to transfer the

credit balances to the liquidation

account. The bank complied with this

request and then submitted a proof of

debt in the sum of the debit accounts.

Subsequently when the bank became

aware that it possessed a right of

The obligation of the insolvency practitionerto act honourably and fairly in the administration of insolvent estates

By Keith Bennetts*

Keith Bennetts

Legal


set off under the Corporations Act,

the bank sought from the liquidator

reimbursement of the sum of $8,218

in respect of which it claimed a set off,

while reducing the $70,000 proof of

debt by the amount recovered.

In the first instance the liquidator

took the position that the bank

was estopped from claiming back

the $8,218. Subsequently these

proceedings were commenced by

the liquidator seeking directions

from the Court as to the appropriate

disposition of the funds.

In applying the rule in Ex parte

James the Court reasoned that in

view of the bank’s mistake as to its

statutory right of set off, the liquidator

was in substance possessed of funds

belonging to someone else and so

ought to set an example by restoring

the funds to the bank which could

then proceed to give effect to its right

of set off.

Barringtons Accounting Pty Ltd v

Barringtons Your Business Advisors

Pty Ltd (in liquidation) (2015)

WASC 56, 11/2/2015

Recently the Supreme Court of

Western Australia had occasion to

review the rule in Ex parte James

with respect to payments made by

debtors to the wrong creditor, being

a company in liquidation.

In the case the plaintiff had

purchased a company’s business

assets. Subsequently the company

proceeded into liquidation. The

essence of the plaintiff’s claim was

that a number of its clients, who

had previously been clients of the

company, had mistakenly made

payments in respect of services

performed by the plaintiff into bank

accounts in the name of the company

in liquidation, intending that the

payments be made to the plaintiff.

The payments were made both

before and after appointment of the

liquidator in the amount of $268,646.

The plaintiff sought leave of the Court

to commence proceedings against the

company in liquidation with a view to

recovery of the funds.

For reasons beyond the scope of

this discussion the Court determined

that the applicant did not have

standing to bring proceedings against

the company that technically involved

the rights of the clients.

Importantly, however, the Court

identified an alternative to action

against the company, namely, the

supervisory role of the court with

the principles of the rule in Ex parte

James in mind. In canvassing the

relevance of the rule in Ex parte

James, the Court concluded:

“It is at least arguable that on

being discovered that money has

been mistakenly paid to a company

in liquidation under the control

of a liquidator appointed by the

court, the court would act in the

manner contemplated by the earlier

authorities [applying the rule in

Ex parte James] and direct that the

money be repaid. As the principle is

concerned with practical justice rather

than legal entitlement, it is at least

arguable that the court might make

a direction for repayment without

demanding an expensive and time

consuming inquiry….”

Clearly the Court envisaged

that the most appropriate means

of resolving the matter was an

application to the court with a

view to invoking the rule in Ex Parte

James aimed at redressing the

unfair enrichment of the company

in liquidation.

Legal


Does the rule in ExparteJames extend beyond cases involving recovery of mistaken payments?Cases involving the rule in Ex parte

James have moved beyond mistaken

payments, with potential to regulate

a range of events arising out of the

administration of insolvent estates.

For example, in Re Associated

Dominions Assurance Society Pty Ltd

(1962) 109 CLR 516, an employee of

a company in liquidation had a two

year limitation period to bring a claim

for payment in lieu of long service

leave. The employee had relied upon

the liquidator’s announced intention

to seek directions from the court on

the matter, and accordingly did not

make an application in the ordinary

way. When the liquidator eventually

made the application for directions

the two years had elapsed since

the termination of employment,

so as to prevent the employee from

pursuing the claim in the winding up

irrespective of the outcome of the

directions application. The High Court

held:

“In those circumstances I do not

think it would be proper to allow

the claim to be defeated by the

limitation…. And upon the principles

enunciated in Ex parte James ….

I propose to disregard the suggested

limitation.” (para 5).

Cases where the rule in ExparteJames has not been appliedOn occasions the courts have been

reluctant to apply the rule in Ex parte

James, particularly if it can be shown

that the insolvency practitioner

has not personally been involved in

the transaction or decision under

scrutiny.

In this regard the following case

provides important outcomes for

trade credit professionals. In Re Alias

Ayoub Ex parte: Brian Raymond

Silvia (1983) FCA 112, unbeknown

to the trustee in bankruptcy the

undischarged bankrupt commenced

operating a business. In the course

of trading the bankrupt purchased

stock and office equipment on credit.

The suppliers were unaware of the

bankruptcy when they extended

unsecured credit to the bankrupt.

Although the stock and equipment

supplied became after-acquired

property vesting in the trustee for the

benefit of pre-bankruptcy creditors

(section 116(1)(a) Bankruptcy Act),

the suppliers’ claims arising after the

date of bankruptcy were not provable

in the bankruptcy (section 82(1)

Bankruptcy Act).

As a consequence the trustee

sought directions from the Court

as to whether the rule in Ex parte

James justified the trustee paying

these debts out of the assets

available in the bankruptcy. In

deciding that the case “does not

amount to inequitable conduct

of the kind that has hitherto been

regarded as sufficient to invoke the

rule in James’ case,” the Court was

influenced by the fact that:

z There was no evidence as to what

steps, if any, the creditors took

to check the bankrupt’s credit

worthiness before supplying him

with goods

z The creditors ran the risk of doing

business with the bankrupt

z The trustee was unaware of the

transactions

z It was not to the point that

remedies available to the creditors

to recover their debts against the

bankrupt personally were likely to

prove fruitless.

Summing upIt is apparent that the enquiry

undertaken by a court in applying the

rule in Ex parte James will often be

fraught with vagaries and uncertainty.

Each case must be dealt with on its

own facts and the court is free to act

according to the judge’s opinion as

to what would be just and fair in each

case.

Moreover the enquiry undertaken

by the courts is not simply to

determine if a legal right exists in the

hands of the claimant. An enquiry

premised on “fairness” extends

beyond this into the realm of ethical

propriety and commercial morality.

As one Court observes:

“When the authorities employ

the phrase “just and fair” they

are not using it in the sense of

unconscionable as a matter of the

settled principles of equity, but

rather, just and fair in the mind of

the person on the Bondi bus.”

Notwithstanding the vagaries

involved and the likelihood of

questions raised becoming “the

subject of honest difference among

honest men”, the courts have not been

deterred in their willingness to apply

the rule in Ex parte James to ensure

that the highest standards of fairness

are achieved in the administration of

insolvent estates. n

*Keith Bennetts is National Consultant for BRI Ferrier

Cases involving the rule in Ex parte James have moved beyond mistaken payments, with potential to regulate a range of events arising out of the administration of insolvent estates.

Legal


Many rules which apply to “paper”

contracts also apply to electronic

contracts entered into by email,

online or otherwise electronically.

As many businesses and suppliers

move to online and electronic

credit applications, including with

customers who are not in Australia,

these rules are even more pertinent.

Some of these rules were recently

considered by a number of courts,

including the Supreme Court of

Queensland in Stellard Pty Ltd & Anor

(“Stellard”) v North Queensland Fuel

Pty Ltd (“NQF”) (“Stellard’s Case”)

which considered the electronic

signing by email of a contract which

created an interest in land. Thomson

Geer Lawyers acted for the successful

party, Stellard.

In a three part series, we will

discuss certain issues concerning

electronic transactions and how they

might affect you:

z PARTONE: can an email be a

“signature”? When do Credit

Applications and their Terms

and Conditions of Trade (called

“T’s+C’s”) and guarantees need to

be “signed” and are foreign laws

relevant?

z PARTTWO: who has sufficient

authority to “sign” on behalf of

a customer or guarantor and

what happens if they do not have

authority?

z PARTTHREE: when are the

parties bound during negotiations,

even when they say “subject to

contract”?

Can an email be a signature? Generally, if a contract (or a clause

therein) creates an interest in land or

is a guarantee, the laws in Australia

and elsewhere require that there must

be a memorandum or note in writing

signed by the relevant party or their

agent. This is especially relevant for

creditors who rely on charging clauses

to lodge caveats over interests in land

or on guarantees. In Stellard’s Case:

z Stellard wanted to buy land off

NQF and after a trail of various

emails sent NQF an email noting

the amount the company was

offering to pay and the general

terms of the offer (“offer email”).

z No formal contract document

had ever had a handwritten or

electronically encrypted signature

placed on them.

z An email (“the acceptance

email”) was sent by NQF’s agent

(being the director’s son “Drew”)

accepting Stellard’s offer email,

and containing the intentionally

typed name “Drew” at its end.

z NQF agreed that the acceptance

email was sent by Drew and that

it was a “memorandum or note in

writing”.

z NQF alleged that the acceptance

email was not an enforceable

contract for the land as it was

not “signed”.

Was the acceptance email a “signed” memorandum or writing? Australia has a national scheme for

electronic transactions laws. Similar

laws also exist in other countries.

In Stellard’s Case, the Court ruled

that, given the trail of emails, the

acceptance email contained a

“signature” and so there was an

enforceable contract for land as it was

Electronic contracts – what’s new?By Peter Mills and Robert Gallagher

Robert Gallagher

Peter Mills

Legal


a “memorandum or writing …signed”

by the registered owner or its agent:

In circumstances where parties

have engaged in negotiation by

email and in particular where

an offer is made by email then

it is open to the court to infer

that consent [to the method

of use being email] has been

given by conduct of [the

relevant party, being consent

by the seller NQF].

Drew, in communicating

negotiations via emails had implied

consent on behalf of NQF to the

method of signing by email.

Which of the relevant electronic

transaction laws apply to suppliers

T’s+C’s will depend on their wording

and whether a business uses an

online system, emails or other

electronic communications for credit

applications and guarantees especially

if there is no email trail.

If done correctly, “signing” of

documents may be possible by

an electronic means other than

emails, provided a supplier strictly

complies with the relevant electronic

transactions laws of Australia or

elsewhere.

When do T’s+C’s and Guarantee’s generally need to be “signed” to be enforceable for certain rights?T+C’s and guarantees will normally

contain express terms to secure any

payments owed to their supplier.

Common examples of these are:

z The supplier will retain ownership

of its goods until they are paid

for in full (called “a ROT clause”).

This is a “security interest” under

the Personal Property Securities

Act (2009)(Australia) (called

“the PPSA”) and the equivalent

laws of other countries that

suppliers might operate in. To be

enforceable against the goods:

— Under the PPSA, the T’s+C’s

may be either “signed” by

the customer, or “adopted”

by an act or omission of the

customer.

— Under the equivalent laws of

other countries, the T’s+C’s

must be “signed” by the

customer and cannot be

merely adopted. Failure to

have the T’s+C’s “signed” will

mean that there is no “security

interest”. The ROT clause is not

enforceable and the supplier is

at best an unsecured creditor.

z A charge is granted to the

supplier over any interest in land

the customer may have either

currently or in the future (called

“a charging clause”). A charging

clause entitles the supplier to

lodge a caveat over any interest in

land registered in the name of the

customer. This is a powerful tool in

debt recovery. To be able to lodge

a caveat under Australian law the

T’s+C’s (as in Stellard’s Case) must

be “signed” by the customer. Most

other countries have the same or

similar requirement for their caveat

lodgement systems.

z In guarantees, a charge is also

often granted over any interest

in real or personal property which

the guarantor has, or is capable

of granting an interest in (called

“a general charging clause”):

— Under Australian law, a

guarantee must be “signed”

by the guarantor or its agent

for its terms to be enforceable.

It cannot be “adopted” and the

PPSA does not override this

requirement;

— The test of whether an email

by a guarantor is a “signed”

guarantee is similar to that

discussed in Stellard’s Case; and

— The requirement for a

guarantee to be “signed” is

also common under the laws

of most countries.

Under the PPSA and equivalent

foreign laws, registration on the

relevant register is normally also

required.

TakeawaysIn summary, as suppliers more

commonly use online and other

electronic transactions for account

applications, guarantees and other

documents, it should be ensured that

their processes and documents comply

with various laws for how a document

can be “in writing” and lawfully

“signed”. Whilst an email can be a

signature, generally suppliers should:

z Identify the requirements of the

PPSA and relevant equivalent

foreign laws and whether their

T’s+C’s need to be “signed” or

need only be “adopted”.

z Ensure that guarantees are “signed”

as required under the relevant

Australian and foreign laws.

z Ensure that documents and

processes comply with Australian

and foreign electronic transactions

laws and other laws to ensure that

they can enforce their ROT clause,

charging clause and/or general

charging clause.

z Whether they use email, facsimile,

hard copy, a web portal or other

process, make sure that it satisfies

the relevant requirements for the

relevant document to be “signed”.

This will depend on the facts, the

relevant electronic transactions

laws, supplier documents,

processes & procedures and

whether a foreign country’s laws

are relevant.

z Consider the risk if they fail to have

their T’s+C’s and/or guarantees

“signed”, they may not be able

to enforce various rights against

the relevant assets, customer,

guarantors or third parties, or

lodge caveats.

z Ensure that they properly register

under the PPSA and the equivalent

foreign laws. n

Written by:Peter Mills, Special Counsel [email protected] T +61 7 3338 7921

Robert Gallagher, [email protected] +61 7 3338 7920

Legal


A lesser-known form of insolvency

appointment that is very effective

for creditors is a Statutory Trustee

appointment of real property.

So, what is a Statutory Trustee appointment?A creditor applies to court to appoint

a statutory trustee over real property.

Once appointed, the statutory trustee

secures and sells the property and

distributes the proceeds in a manner

ordered by the court. Typically

mortgagees are paid first and then the

creditor that made the application.

By doing so, the creditor effectively

makes themselves a priority secured

creditor over the property (i.e. second

only to any pre-existing mortgagee).

How does such an appointment occur?The creditor has a clause in the credit

application signed by the debtor

that says in the event of a default,

they agree that the creditor has a

charge over the debtor’s interest in

any real property they own. When the

default occurs, the creditor will secure

their interest by placing a caveat

over the property. They then have a

three-month window to commence

proceedings to enforce their charge.

Normally, an application is made

whereby the creditor demonstrates to

the court that they have the relevant

charging clause and due to the default

they request an independent party to

be appointed as a statutory trustee.

The more common orders made by

the court will be as follows:

1. Statutory trustee be appointed to

the real property in question

2. The statutory trustee secures and

sells the property

3. The property’s sale proceeds

be distributed in the following

manner:

a. All selling, conveyancing and

statutory trustees court costs

be paid.

b. Any mortgages over the

property be paid out in full.

c. The applicant creditor’s debt

be paid in full.

d. Any remaining funds be

returned to the owner of the

property.

Evidently, it is a very useful tool

for creditors to gain a priority status

and obtain some security over

tangible assets. The debtor is given

plenty of warning about the action

and therefore should the statutory

trustee be appointed it should come

at no surprise to the owner(s) and

therefore the appointment should be

very straightforward... well that’s not

always the case.

Recently I was appointed as

a statutory trustee to a property

whereby the process outlined above

had taken place. Although there was

one major difference, the property

was jointly owned by two people:

Owner A and Owner B.

Statutory Trustee sale– creditor winsBut, co-owner bears the burden of skeletons in the closet

By Chris Cook*

Chris Cook

Legal


Owner A had no idea that Owner

B had a charging clause over the

property. In fact, the two owners

had separated and were no longer

in contact. This is where things got

interesting. Upon our appointment

we contacted both owners. Owner

A was shocked to hear of our

appointment and claimed to have

had no knowledge of a court order

requiring us to sell the property.

Owner A disputes this position

entirely and takes legal action in an

attempt to terminate our appointment

as statutory trustees. Through this

process the following was revealed:

z Owner A and Owner B were

in a defacto relationship and

co-purchased the property.

z The two owners separate.

z The property is used as a rental

property with an unrelated tenant

occupying the premises for a

period.

z Owner B operates their own

business and as part of this

process, signs a document

whereby a charging clause is

included for Owner B’s interest

in any property, allegedly without

Owner A’s knowledge.

z Owner B’s business fails and

as a result we are appointed as

statutory trustee.

After significant time and

correspondence between all parties

involved, the legal action is dismissed

and our appointment as statutory

trustees is acknowledged. At this

time (after many months) we are

finally able to perform our duties and

proceed to sell the property. Once

the property was sold, the expenses

and mortgage was paid out and the

net proceeds were split equally to

each owner. From Owner B’s share

the creditor and the application

costs were paid resulting in Owner

B receiving no return at all. Owner

A was entitled to 50% interest in net

proceeds.

Unfortunately for Owner A, as a

result of their legal action there were

significant delays and increased costs

incurred by the statutory trustees,

their solicitors, as well as Owner A’s

own legal expenses. This resulted in

significantly less being available for

their interest in the property.

What could Owner A have done differently?Upon their separation, immediate

action should have been taken to

deal with the property, either by one

owner buying out the other or with

an outright sale to an external party.

If the property had been sold or

Owner A bought the property

outright, Owner B would be removed

from the legal title on the property,

in which case, the creditor would be

unable to lodge a caveat over the

property and therefore no statutory

trustee would have been appointed.

Some stamp duty would likely be

payable on any purchase between

the parties and possibly some capital

gains tax issues. However, by ignoring

the issue and allowing the property

to remain in joint names, Owner

A received significantly less. Not

only through the statutory trustee’s

costs but also through sharing any

appreciation in the property’s value

with Owner B which would be a

sole benefit had the property been

purchased outright by Owner A. n

*Chris Cook is a Partner at Worrells BrisbanePhone: (07) 3225 4386- See more at: http://www.worrells.net.au/eUpdateNewsletters/ViewArticleListing.aspx?ArticleId=5748#sthash.a1HnoRrX.dpuf

Legal


Most credit managers take the

view that legal action for debts

below about $5000 is simply not

worthwhile. This is usually because

of their poor experiences with legal

action.

The result is that literally hundreds

of millions or even billions of dollars

are being written off annually, which

are in fact quite collectable.

In this article, I will start from

the beginning and describe what an

excellent collection system would

provide for in terms of legal action.

The first step is to ensure that

the information collected from the

customer is not only correct in terms

of the exact name and the home

address but importantly a mobile

number and email address along with

details of where the customer works.

If the customer is a company,

the default position is that directors’

guarantees must be obtained. Legal

action against individuals will always

produce a better outcome than

against companies.

Obtaining work information for

debt granted to individuals is an

essential step to being in a position to

sue and successfully recover the debt,

as I will get to further on.

Your business must have proper

trading terms in place and there must

be a clause which provides that in

the event of default, the customer

will be liable for all costs incurred by

the creditor, including commission,

interest and indemnitylegalcosts.

By having this clause in place,

the decision to sue becomes a much

easier one because at that stage the

commission payable to your collection

agency can be added to the claim

along with indemnity legal costs. The

difference between “indemnity legal

costs” and normal “party/party legal

costs” granted by the court is usually

about 40% more.

Thus, if you have the correct

clauses in place, when you sue, you

will be adding all legal costs incurred

by you. This will significantly bump up

the amount of the claim and this alone

will increase pressure on the debtor.

When deciding to sue, you need

to ensure that you have a correct

address for service. However, if you

don’t but you have a verified work

address, it is possible to get an order

for substituted service and to serve

the documents at work.

A final piece in the jigsaw is to look

at the state in which the debtor lives.

As the overwhelming percentage of

consumer judgments will be enforced

by Garnishee of wages, there are

certain states which offer better and

cheaper processes for this than others.

Unfortunately, South Australia is

What is the threshold for suing a debtor?By Roger Mendelson*

"Obtaining work information for debt granted to individuals is an essential step to being in a position to sue and successfully recover the debt..."Roger Mendelson

Legal


effectively a no go area for garnishees,

whilst New South Wales and ACT

provide cheap, quick and effective

Garnishee Orders. All other states

provide worthwhile processes.

In all states, there will be an

additional cost order granted against

the debtor to cover the garnishee

costs.

In our experience, if all of the

above boxes have been ticked, then it

is commercially worthwhile suing on

debts as low as $500.

For company debts which exceed

$2,000 and are undisputed, we would

not sue but go straight to Statutory

Demand. This is quicker, cheaper and

more effective.

In order to handle volume legal

actions, you need a law firm which

specializes in debt collection and

which provides fixed price fully

inclusive legal action services for all

Australia jurisdictions.

If your policy has been to not

sue on consumer debts, I suggest

that you set aside ten or twenty

files and carry out a test run. The

results will not be immediate because

garnishee processes tend to invariably

involve payments over time but I am

confident of an overall recovery of the

net debt of 75-80%.

If you do so, you will find that

you are advantaged by the fact that

most credit managers don’t sue.

Accordingly, debtors will usually

ignore threats because they are aware

from experience that the threats made

are hollow. It does no harm to you to

be seen as being effective and tough

in your collections processes. The

upside to this is that debtors will know

that “they can’t mess with you”. The

result is that next time around, you will

get paid in preference to others, who

will probably be ignored. n

To ensure that you incorporate the correct wording in your trading terms, contact the Prushka Client Services Team on 1800 641 617 or go to www.prushka.com.au and obtain the complete wording, which is provided without charge.

*Roger Mendelson is CEO of Prushka Fast Debt Recovery Pty Ltd and is principal of Mendelsons National Debt Collection Lawyers Pty Ltd. Prushka acts for in excess of 53,000 small to medium size businesses across Australia and operates on the basis of NO RECOVERY – NO CHARGE.

The writer is also author of The Ten Mistakes Businesses Make and How to Avoid Them and Business Survival, both published by New Holland Publishers in 2009.

Mendelsons Lawyers Fixed Price Fully Inclusive legal action in all Australian jurisdictions.


aicm Training News

IntroductionEvery piece of written work tells a story. It has a beginning,

middle and end.

You may find it helpful to think of your written

assessment as a discussion of the topic(s) to which you must

respond. The introduction should clarify the terms that will

be used to introduce the ideas/concepts to be considered

and indicate your overall conclusion. The body of the written

assessment is used to explore the idea and facts at hand

and should inform the reader of your point of view. In the

conclusion you should not raise new ideas, rather you should

restate your case and support it by restating your strongest

points so that the reader is convinced of your viewpoint.

1. The QuestionWhat is the question actually asking me?

Try breaking down the question substituting words

and phrases with words and phrases of similar meaning

to cement and confirm your understanding of what it is

you are actually being asked to do. Write the question as a

statement incorporating your understanding of the question.

Next ask yourself what is the major idea(s) to be

explored within this written assessment? Do I agree or

disagree with this idea? From here you can begin to

formulate a plan for your assessment.

2. Who is my audience? When writing anything ask yourself, who am I writing this

for and for what purpose? It is here that you can decide on

the best style of writing. In most workplaces the style will

be a mix of academic and technical writing. Although this

sounds quite difficult we actually read and write reports

every day. You then need to decide is this explanatory

writing i.e. it will explain something to the audience or is

it responsive, that is responding to something already in

progress. The best way to address these questions is to

remember who has asked you to prepare this assessment

and for what purpose? What is their understanding of this

subject matter? What is their understanding of jargon and

other specific terms? Why are they asking for it? Do they

want your personal opinion or do they want you to evaluate

(for example a process or a policy)? Are you required to

come to any conclusion? Will one person be reading this

report or will it be read by many? It is important in an

assessment to write from the neutral third person. Rather

than saying “I believe…” or “I feel…” you need to say “it is

believed…” or “a common feeling…”

3. Plan Your WritingIt is a good idea to develop a plan or structure for your

assessment before you begin. For example, you may be

writing a 2000 word report in which you have to address

four different ideas each containing five supporting points.

In this case it would be a good idea to create a flow chart

or a mind map or even a simple list of dot points stating

your ideas and their supporting points. This way you can

structure the assessment and ensure you have a logical and

clear progression.

4. The Opening StatementThis is called the thesis statement, in your thesis statement

it is a good idea to restate your understanding of the

question in a statement but also address your argument

and the overall idea of the essay.

It is important that you do not conclude (i.e. answer the

question outright) in the opening statement but instead use

gentler language so that the assessor will be encouraged to

read on.

For example, if asked “Do you agree that a company’s

policies and procedures are of paramount importance

during the collection process?” A good thesis statement

would be “The importance of a company’s policies

and procedures during the collection process must be

recognised although there are other equally important

factors”.

5. The IntroductionWhen beginning a written assessment not only are you

introducing a topic but you are introducing the work

itself. After you have written your thesis statement it is a

good idea to define or clarify any points or language that

may have a specific meaning in the context of your work.

It is important to do this as words or phrases may have

alternate meanings and unless clarified your assessor could

be confused.

It is then a good idea to address the topics that you are

going to discuss devoting a sentence to each topic, these

are called topic sentences.

For example if you are writing a 1000 word assessment

you may wish to raise 3 separate ideas or topics. In

the introduction you would have 3 separate sentences

addressing each topic. This acts as kind of a road map so

that after the assessor has seen your thesis statement they

can understand the direction of the assessment.

Preparation guidelines for writing a written assessment/essay

aicm Training News


6. The Body Begin with the topic sentence, as this is the idea you will be

discussing. Then for every supporting point within that idea

it is recommended you follow this simple formula.

Point What is my point?

Example Where in the text or the workplace is this point

demonstrated/supported?

Effect How does this point support my initial idea?

Link Why is this relevant to my assessment?

For example a topic statement of “Another important

factor in the collection process is the legislative framework

that must be complied with.”

You would then go on with your P.E.E.L.

“Legislation directly affects the way that we interact

with our customers and what information we may hold

about them. One important piece of legislation is The

Privacy Act 1988 (Cth) this affects the information we

collect, who we can divulge that information too, how that

information is stored and transmitted and who we may talk

with during the collection process. This law is superior to

company’s policies and procedures and must be adhered

too at all times.”

P State your point clearly and concisely.

E Your example is where you have evidence of that point

either in a text or in the workplace. Examples support

the point you have made. They do not make the actual

point.

E An effect is what many people have trouble in

demonstrating. To find the effect a simple question to

ask is, how or why does this example support my point?

and how or why have I chosen this point to explore my

idea?

L The link is a statement that actually ties together the

information you have just written and relates it back to

the initial question you are answering, it is where you

show why it’s relevant within your assessment.

Headings can be an important part of an assessment.

Sometimes it may be beneficial that every time you begin

a new topic or idea you place a heading above it such

as a title. This heading does not take the place of a topic

sentence it simply supplements it.

7. ConclusionNow that you have written your assessment it is vital that

you actually then confirm your reader’s understanding of

what you are saying by concluding rather than just ending.

It’s recommended that you do not start a conclusion with

the words “In conclusion…” or “Therefore…” just start with

a sentence. A common way of starting a conclusion is by

actually writing a paraphrased version of your initial thesis

statement often with some of the extraneous information

cut out. Then you should go on to restate some (not all)

of your strongest points. Your points are not your ideas or

your topics but the facts that supported them. After you

have restated these you must finish the essay/report with

a strong concluding statement. By this, I mean you must

actually answer the question. If you are being asked for a

yes or a no answer then here is the time to give it. Integrate

your yes or no response into a sentence that resembles

your thesis statement or actually addresses the question.

An example of a conclusion would be:

“Although a company’s policies and procedures are of

vital importance, they cannot be considered to be the sole

paramount concern with the collection process. When you

look at legislation like The Privacy Act 1988 (Cth) and the

Uniform Consumer Credit Code, industry guidelines like the

correct contact procedures and the ability to have repeat

sales with an existing customer who we are collecting from,

the importance of a company’s policies and procedures

could not be considered of paramount importance during

the collection process. At best they would be of equal

importance.”

8. Quotations, Referencing, Bibliographies and PlagiarismPlagiarism; It is vital that your work is your own original

work. Plagiarism is when you use somebody else’s words or

ideas and present them as your own.

Quotations; When quoting from a text use “quotation

marks” then reference the author, the year of publication

and the page number. Include your text in your bibliography.

Bibliography; at the end of your assessment, under the

heading bibliography, write a list of all the texts you have

consulted. List their titles, their author and the year of

publication.

Student Testimonial

Commencing the Certificate III in Mercantile Agents meant a return to the books after a 10+ year absence which can be a little daunting when you balance work and family alongside.

The flexible learning option allowed me to pace the course along with those commitments. It’s a great feeling to have completed the course and receive certified validation of my many years of credit on the job experience.

I put my learning into practice every day and look forward to completing more courses in the near future.

RegardsHelen DicksonCollections Manager

MELBOURNE:

21st & 22nd March – Legal Compliance

(C,D and 4)

14th April – Personal Insolvency (C,D)

13th April – Manage overdue accounts

(C,4)

13th May – Manage and recover bad

and doubtful debts (C,4)

17th & 18th May – Manage factoring

and invoice discounting arrangements

(E,D)

21st & 22nd June – Developing your

credit policy and procedures (C,D)

BRISBANE:

6th April – Assess credit applications

(C,4)

7th April – Personal Insolvency (C,D)

8th April – Manage overdue accounts

(C,4)

9th May – Manage and recover bad




(E,D)

8th & 9th June – Developing your


SYDNEY:

9th March – Assess credit applications

(C,4)

11th March – Implement risk

management strategies (C,4)

17th & 18th March – Legal Compliance

(C,D and 4)

21st April – Personal Insolvency (C,D)

22nd April – Manage overdue

accounts (C,4)

23rd May – Manage and recover bad




(E,D)

27th & 28th June – Developing your


TABLE OF EXPLANATION:

C= Core Unit

E = Elective Unit

D = Diploma

4 = Certificate IV

Important Information:

You do not have to be a current

AICM student undertaking a full

qualification to attend any AICM

face to face training. You may

wish to undertake a program for

your professional development, or

enhance and update your current

skills and knowledge.

On the completion of the face to

face training, if you wish to receive a

Nationally recognised Statement of

Attainment you will be required to

undertake the online assessment/s

for the unit/s of competency.

Please register your interest early, as

there is a minimum requirement of

8 students to conduct face to face training.


aicm Training News

Referencing; AICM uses the Harvard referencing system.

This can be found easily on the internet by using the search

terms “Harvard referencing”.

9. Revision & ReviewIt is of upmost importance that you review and revise your

writing. After you have completed your essay report and

completed the spell checks, you should then read through

the essay and make sure that the sentences are complete;

that the essay/report has a logical progression and that you

are satisfied with your writing. It is also a good idea if you

can to have a third party review your writing. This way they

can give you their feedback and bring a fresh perspective

allowing you the opportunity to revise before submitting.

10. Common TermsThesis Statement is the opening statement to any essay

or report

Topic Statement is an opening statement whenever

you are addressing a new idea within

your essay report

Point is the point you are making that

supports your topic/idea

Other Information on Assessment/Essay preparation,

that you may find useful:

https://student.unsw.edu.au/essay-writing-basics

Recent Graduates

Allison Parry

Emma Hill

Heather Pfitzner

Kerrie Adams

Rebecca Jane Hebbard

Kirsty Gray

Robyn English

Meghan Gruber

Jennifer Tucker

Amelita Alfonso

Angela Kane

Stephanie Chisesi

Phillippa Davie

Lisa-Maree Monteith

Ross Barclay

Lisa Gram

Alexandra Papas

Helen Dickson

IN-HOUSE

Baiada Australia

2016 Face to Face Training Calendar

aicm Can We Help?

z Can you trust the sales team to negotiate the terms of

trade with every new customer, so that your terms of trade

contracts are not standard term contracts and therefore

outside the new laws?

z Is the real problem is going to be with the clause which

allows you to change the terms of trade by notice and

publication on the internet?

z Is it going to be too hard to monitor the position of

customers with the number of their employees and will

it be too hard to have different terms for different sized

customers?

z The $300,000 contract limit is likely to apply to each and

every order (viz. contract), such that customers with less

than 20 employees, but purchasing $millions each year

through separate “small” orders under $300,000 will seem

to have the benefit of the new laws.

z The new law will apply as soon as a customer places

a new order and thereby enters into a new contract after

12 November 2016.

A full outline of these issues will be in the May edition, the

AICM will also provide further workshops and seminars on the

changes throughout the year.

QuestionA Sydney Credit Manager asked “The Unfair Contracts

legislation being extended to small business seems to mean I

just need two Credit Applications. One for small business and

one for others.” Is it really that straight forward?

AnswerRebecca Ross, solicitor from Gavin Parsons and Associates

(www.gpalaw.com.au) and Geoffrey McDonald, Barrister at

9th Floor Windeyer Chambers (www.9windeyer.com.au/

geoffrey_mcdonald.shtml) investigated this issue at the

recent Credit Symposium in NSW recently, the matter is

definitely more complex.

In the December edition of Credit Management in Australia

(click here to view this issue) David Francis provided an

overview of the proposed laws and in our next edition

Rebecca and Geoff will be writing an article based on the

discussions which took place during the session on “unfair

contract terms”. These discussions touched on topics such as;

AICM receives questions from Credit Managers that it puts to a panel of lawyers, 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.

Unfair Contracts


Call 02 9906 4563 or vist aicm.com.au

(or improve results from your credit staff)

Want to progress your credit career?

Consider an AICM Qualif cation course

Key credit issues such as personal & corporate insolvency, developing credit

policies & compliance.

Issues relating to credit applications & securitisation, compliance, managing

bad & doubtful debt & customer service.

All aspects of enforcing payment obligations & obligations of mercantile

agent & debt collection activities.

Diploma of Credit Management

Certificate IV in Credit Management

Mercantile Agents Training

A qualification course can help you achieve your targets. Offered nation wide, you can study in your own time (24/7) -

with support available. RPL credits could fast-track your qualification: If you have industry experience or prior

education, you may be eligible for Recognition of Prior Learning. Employer Grants: You may qualify for a training grant.

Find the qualification course that best suits your needs:

Or start small with a single unit: Each qualification is made up of a number of single units. You can start by completing one unit at a time, contributing to the relevant full qualification course, should you decide to complete all of the units in due course.

Stop putting it off & take the frst step:

Enrol to propell your credit career (or staff) to the next level.


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and 18-21 March. I encourage everyone who has attained

enough points and meet the criteria who are considering

becoming a CCE to seriously sign up and do so.

z The networking breakfast on the 16th March discussing

Practical Steps to Maximise Recoveries followed by the

networking night on the 5th April.

z Let’s not forget the YCP Trivia Night on the 5th May and

judging by how popular this event has been over the past

couple of years I encourage everyone to get in and register

early to avoid disappointment. It truly is such a fun night.

z The Women In Credit (WINC) Luncheon on the 20th May

is another not to be missed event and such a positive

initiative. I urge everyone who can to come along.

I look forward to seeing you all at these coming events.

In closing I would like to thank my council for all their help

and support. These Councillors do some unbelievable work

behind the scenes making all of our events so successful and

ensuring we provide the professional development Credit

Professionals need. I would also like to thank Nick and his head

office staff for all of their support.

– Arthur Tchetchenian, NSW President

2015 Masterclass The 2015 Masterclass was held prior to the Pinnacle Awards in

December with over 50 attendees.

The masterclass started with Anna Taylor from Results

Pinnacle Awards.

Pinnacle Awards.

National Conference: Grant Morris (National President) presenting the President’s Trophy to Arthur Tchetchenian.

President’s Report With this being my first President’s Report I want to start by

saying a massive thank you to our President for the past couple

of years, Colin Magee, who has stepped down due to personal

reasons. Col has effectively led a passionate, engaged and

dedicated NSW Council which led to NSW being awarded the

2015 President’s Trophy which was the first time in more than

10 years. On behalf of all NSW members and the NSW Council

I’d like to thank Col for his commitment.

In Col’s absence a new structure will get us through the rest

of the year with myself standing in as President and assisted

by a leadership team comprising Malcom Poslinksy (Treasurer),

Pete Morgan (Membership), David Hunt (Events) and Andrew

Smith (Awards) joining me in taking the lead and all other

Councillors maintaining their existing portfolios which they

perform so effectively already.

It’s the start of a new year and already the calendar is filled

with lots of events, so it’s a time to remind all our members

about upcoming dates of interest;

z The next CCE exam is scheduled from the 11th – 14th March

Andrew Spring (Jirsh Sutherland) and Gregg Odlum (Ecolab & NSW AICM Director).

Call 02 9906 4563 or vist aicm.com.au

(or improve results from your credit staff)

Want to progress your credit career?

Consider an AICM Qualif cation course

Key credit issues such as personal & corporate insolvency, developing credit

policies & compliance.

Issues relating to credit applications & securitisation, compliance, managing

bad & doubtful debt & customer service.

All aspects of enforcing payment obligations & obligations of mercantile

agent & debt collection activities.

Diploma of Credit Management

Certificate IV in Credit Management

Mercantile Agents Training

A qualification course can help you achieve your targets. Offered nation wide, you can study in your own time (24/7) -

with support available. RPL credits could fast-track your qualification: If you have industry experience or prior

education, you may be eligible for Recognition of Prior Learning. Employer Grants: You may qualify for a training grant.

Find the qualification course that best suits your needs:

Or start small with a single unit: Each qualification is made up of a number of single units. You can start by completing one unit at a time, contributing to the relevant full qualification course, should you decide to complete all of the units in due course.

Stop putting it off & take the frst step:

Enrol to propell your credit career (or staff) to the next level.


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Masterclass presenters Nicole Wales, Michael Brereton John Field and Anna Taylor.

New South Wales

2015 Pinnacle Awards sponsored by Dun & BradstreetAfter months of nominations and voting the Pinnacle Awards

dinner was held at the Novotel Darling harbour. This was a

glamorous event befitting the excellence of the finalists in this

years awards. The night was a huge success with 140 guests in

attendance. The event was completely sold out. Every section

of the credit industry was represented with only the National

Conference bringing more Credit Professionals together at the

one time.

A big congratulations goes out to all the finalists and the

winners of the night. Our thanks to Dun and Bradstreet and all

the individual award sponsors. The winners of the night include:

Credit Manager of the Year, sponsored by AMPAC

– Courtney Murphy from Vinidex

Membership pin recipients 5, 10, 15 and 25 years.

Martin Morris (D&B) and Daniel Grace (Go Electrical).

Joanne Mannah (Force Legal) and Andrew Spring (Jirsh Sutherland).

Andrew Smith (ARMA) and Sev Indrele (Coates Hire).

Legal taking us through PPSA and how it can help defend

preference claims. Followed by Michael Brereton from ARITA

who covered what to expect from Insolvency Practitioners.

John Field then looked at criteria for a quality credit operation.

Last but not least Nicole Wales from Human Tribe closed out

the masterclass with some insights into EQ and emotional

intelligence which really resonated for Credit Professionals and

how they interact with team members, customers and internal

stakeholders. These three speakers made an informative and

enjoyable half day seminar.


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

Professional Partner

Official Division Supporting Sponsors

Our National, Divisional and Professional 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

Divisional Partners

Tuesday 8th March 2016

Wine Tasting NightKPMG, SYDNEY

11th-14th March 2016 and 18th-21st March 2016

Online CCE Exams

Wednesday 16th March 2016

Networking Breakfast – Legal Preference ClaimsASHURST OFFICE, MARTIN PLACE, SYDNEY

Tuesday 5th April 2016

Networking Night – Data & TechRYDGES PARRAMATTA – TBC

Thursday 5th May 2016

Young Credit Professional (YCP) Trivia Night

Friday 20th May 2016

WINC LuncheonKIRRIBILLI CLUB, MILSON POINT

Tuesday 14th June 2016

Networking BreakfastPARRAMATTA

Thursday 14th July 2016

YCPA DinnerKIRRIBILLI CLUB, MILSON POINT

Tuesday 9th August

City Networking NightVENUE: TBC – CITY LOCATION

Friday 9th September

Golf DayOATLANDS GOLF COURSE

9th-12th September 2016

Online CCE Exam

Friday 16th September

WINC High Tea

Tuesday 11th October 2016

National Golf DayGOLD COAST

12th-14th October 2016

AICM 2016 National ConferenceSEAWORLD, GOLD COAST

8th December 2016

Master Class & Pinnacle Awards

Events CalendarCredit Supervisor of the Year, sponsored by Dun and

Bradstreet

– Daniel Grace from Go Electrical

Senior Credit Officer, Sponsored by Austral Mercantile

Cynthia Li from Graincorp

Legal Representative of the Year, sponsored by Jirsch

Sutherland

– Joanne Mannah from Force Legal

External Collections Agent of the Year, sponsored by Byron

Thomas

– Ken Torres from ARMA

Recruitment Consultant of the Year

Nuala Cummins from Dash Recruitment

Consultant of the Year

– Andrew Spring from Jirsch Sutherland

The High Five! Award, Sponsored by ARMA

– Sev Indrele from Coates Hire


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End of year guests.

Queensland

President’s ReportBoth the last event of 2015 and the first event of 2016 were

executed brilliantly by all. With the AICM 2016 National

Conference to be held in Queensland, and more “fun” being

added to Queensland’s calendar of events, it promises to be

an extremely busy year. The Queensland Councillors, members

and other stakeholders are collaborating closely to make this

another successful year.

Firstly, the ongoing support in 2016 from our Partners, Veda,

Dun & Bradstreet, Austral Mercantile, Vincents, Results Legal

and Randstad has already been felt and greatly appreciated.

The engagement by their people make us all proud to be AICM

members.

It would be remiss of me if I do not mention the fantastic

support that our members’ employers provide in allowing AICM

members to organise functions and events, attend meetings

and take AICM enquiries during their normal working day. As

generous stakeholders, there is simply no way that most events

or business could be organised if done only after work hours.

Special mention this month goes out to employer Bruce

End of Year: Anniversary pins Simon Culotta and Carla Seirlis with Melinda Grob.

End of Year: Peter Mills presenting.

End of Year: Men's team – Simon Dawson, Nick Combis as MC, Arthur Tchetchenian and Bruce Patane.

End of year: Event Guests Austin Bull and Jordan Bennie.

End of Year: Peter Mills, Maria Schandl and Julie McNamara.


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Patane, of Patane Lawyers, and his fabulous team for providing

their long standing support of their employees to undertake

AICM business. Bruce even went the extra yard last year and

“volunteered” himself to be part of a panel discussion at our

2015 Xmas function.

After the success of the September 2015 WINC Luncheon,

another WINC will be held this year but much earlier. Details will

be published shortly.

Our 2015 Xmas function was held at “Customs House”

overlooking the beautiful Brisbane River. Two teams debated

“Who did you say makes the better Credit Manager – Men or

Women?”. (to be clear, if the topic sounds familiar, it was actually

chosen by us well before the 2015 AICM National Conference’s

last session debate). It was agreed that Bruce Patane’s use

of electric lights, small boxes and other props, provided the

valuable points required by his team to gain the audience vote.

Well done to Julie McNamara for organising another wonderful

event. A swag full of donated lucky door prizes were won. This

included a golf bag from Thomson Geer Lawyers, golf shirts

from Forbes Dowling, water bottles from Randstad and many

other wonderful prizes.

2016 started off with a superb YCP networking night at

“Social Sabotage” in Fortitude Valley. With a crowd of nearly

40 potential YCP candidates attending, we were fortunate

YCP: Lucinda Bell and Decia Guttormsen.

YCP: Stacey Woodward, Dominic Holland, Mark Moorhouse and Sheree Brittain.

YCP: Austin Bull, Roger Masamvu and Felicity Ford.

YCP: Melinda Grob and Dominic Holland.

enough to hear from a fascinating guest speaker Dominic

Holland. Dominic is the 2015 Brisbane Young Entrepreneur of

the Year (Retail & Services) and is also managing director of

the 2015 High Growth Business Start-up (Tow.com.au). Maria

Schandl, Melinda Grob, Stacey Woodward and Roger Masamvu

did a fantastic job. This is just the first of many YCP events to be

held as part of our “fun” calendar, inspired by the great work of

the other state councils.

Thank you all again for your support of the Queensland

council, and making the AICM informative and “fun” for its

members.

– Peter Mills MICM, President

The Great debate and end of year functionOur end of year event held in November at stunning Customs

House was a fantastic evening enjoyed by all who attended

especially those that participated in The Great Debate with a

‘twist’. Two teams, Men Vs Women, putting their best argument

forward for who would make a better credit manager, the twist,

the Men argued Women would make better credit managers

whereas the Women argued Men would make better credit


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CNN: Roger Masamvu, Peter Mills and Andrew Milne.

Queensland

Managers. Representing the Women were Carla Seirlis, Decia

Guttormsen and Melinda Grob and for the Men, Simon Dawson,

Bruce Patane and Arthur Tchetchenian with Nick Combis as MC

for the evening. The result – Men made the better argument

that of course Women make better Credit Managers.

An evening of laughs and entertainment with great prizes

on offer in our raffle draw, which raised $295 to support White

Ribbon.

We also handed out Anniversary pins to Simon Culotta and

Carla Seirlis celebrating 20 years membership with the AICM.

We look forward to this year’s end of year event!

Welcome to 2016! AICM and YCP Social NightTo kick start the New Year we had our first event at Sabotage

Social in the Valley. We had the pleasure of listening to Dominic

Holland speak of his success over the last few years and he

gave us his insight into the world of business and what it means

to be a young professional. Dominic won the 2015 Brisbane

Young Entrepreneur of the Year (Retail & Services) Award and is

also the managing director of the 2015 High Growth Business

Start Up, Tow.com.au. It was encouraging to see so many young

professionals attend and show an interest in YCP and the AICM.

CNN: Brian Mills and Ben Blake.

March 9th 2016

Credit Network Night – How PPSA can help you defend against a preference claim

TATTERSALLS CLUB


Online CCE Exams

13th April 2016

Credit Network NightEngaging and Retaining Credit Professionals

RANDSTAD OFFICES

20th April 2016

Credit Toolbox – Assessing Credit AppsRANDSTAD OFFICES

11th May 2016

Credit Network Night – Compliance and SecurityVENUE: TBC

13th May 2016

Credit Toolbox – Collect with ConfidenceRANDSTAD OFFICES

8th June 2016

Credit Network Night: Q&A – Time ManagementTATTERSALLS CLUB

13th July 2016

Personal Development Breakfast – InsolvencyVINCENT’S OFFICES

20th July 2016

AICM AGMRYDGES SOUTH BANK

20th July 2016

Awards Dinner – Young Credit ProfessionalsRYDGES SOUTH BANK

August 2016

Personal DevelopmentMagistrates Court Visit & Procedures

MAGISTRATES COURT

8th August 2016

Credit ToolboxRANDSTAD

9th September 2016

Women in Credit LuncheonCUSTOMS HOUSE

Events Calendar


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SCNN: Wayne Thomason, Toni Sawyer and Andrew Milne.

Queensland

Remember to apply for this year’s Young Credit Professional

Award before 31st May. A rewarding experience and a fun night

to be had at the awards dinner taking place in July at Customs

House.

CNN - 2016 ForecastsOur first CNN event of the year kicked off February 10th held at

the Tattersalls Club in Brisbane. Our speakers for the evening

were both from Suncorp. Andrew Milne (Executive Manager

Treasury Sales) and Wayne Thomason (Head of Debtor

Finance) put together a fantastic and engaging presentation for

the evening. Andrew focused on Business Forecast for 2016 for

QLD, what we may expect, where to expect growth and what

to watch out for Wayne focusing on Emerging Segments of the

Debtor Finance Industry, how these products are fast becoming

mainstream business finance and why.

We look forward to our next event coming up on March 9th

‘How PPSA can help you defend against a preference claim’.

CNN: Decia Guttormsen, John Playfair and Jade.

CNN: Melinda Grob and Julie Mcnamara.


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

CNN: Andrew Milne (Suncorp) Presenting.


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President’s ReportAdelaide is buzzing with the preparations for Clipsal 500 whilst

the Adelaide Fringe Festival is keeping the streets alive with

laughter and music till the wee hours of the night. What a way

to start the year!

The functions committee started with a ripper of an evening

at the Elder Park Café. Warm, picturesque, great networking,

paddle boats and a very enlightening interactive presentation

from Jane Calleja on ‘work/life balancing’. Trust the attendees

learnt a thing or two about the art of juggling these two very

important components of life!

This year we are focussing on quality events. In turn, we

have increased our PD committee to help put together more

educational symposiums. These have always been well

received over the years and we look forward to hearing our

members and credit professional’s feedback. Our first event is

on March 17th – aptly titled St Pat’s Power Panel. Being emceed

by one of our finest local entities in the industry and boasting

an array of credit professionals on the panel, you will have a

chance to ask some curly questions – Ask an expert to be Sure.

Introducing Women in Credit for the first time in SA is

exciting for the committee. Preparations are on their way with a

CBD venue already allocated. With national sponsorship from

Veda, NCI and Results Legal, we will have the expertise and

experience with us to ignite a new educational event. We look

forward to seeing some new faces as we discuss the highlights

and challenges for the female gender in the credit industry! I

have no doubt the men will have some input! Watch out for this

exciting event.

We thank our wonderful sponsors for their continued

support and hope you will take up the opportunities to attend

the functions and gain maximum exposure throughout the year.

We welcome any suggestions and comments from you all.

So come along members and professionals. We want to

Catherine Winter and Lyn McKell.

James Neate, Yulia Petrenko and Nick Cooper.

Steve Prescott, Diana Lee, Meagan Duerden and Gail Crowder.

Amanda Campbell, AJ Jaramillo, Rod Sims, Trevor Goodwin and Judy Verhoeff.

Kevin Hollister, kerry hammill, josh richards.

Debbie Foster, Merna Spain and Mike Hayes.


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see you at the events for 2016 and trust you will receive the

educational benefits of being involved with the AICM in South

Australia.

Always supporting our members and colleagues!

– Gail Crowder, SA Division President

SA Division Network NightNetworking on the Balcony! What a perfect summer evening

to have the South Australian Division’s final social function for

2015. The General Havelock Hotel offered the ideal setting for

this event.

Around 35 guests attended and made full use of the large

balcony fitted out with various casual lounges and greenery

which made for a very relaxing and pleasant atmosphere for all

to enjoy.

It was a fabulous end to the year with guests mingling and

chatting to their colleagues and industry professionals. The

variety of hot and cold cocktail food was most enjoyable.

Entertainment was provided by local Adelaide musician,

Jimmy Marin, whose easy listening and soulful voice was very

well received by all. What a wonderful choice for background

Fun on the Paddle Boats.AJ Jaramillo, Daniel Pjevac, Jane Calleja, Rod Sims, Julie Agostino, Trevor Goodwin.

Merna Spain, Susan Goodwin and Mary Jeffries.Montgomery Wolf, Neil Fennell, Stephen Flamer-Smith, Gail Crowder and Rebecca Edmiston.

music – we even saw some guests having a bit of

a sing a long!

The Functions committee, Gail and Trevor, thanked all in

attendance and wished everyone a Happy and Safe Christmas.

They highlighted the achievements of the year and encouraged

everyone to stay involved next year. We are looking forward to

a program that will be both “fresh and exciting”.

The committee has already got a number of innovative

events planned for 2016, starting with a social function at the

Adelaide Rowing Club in early February. Members will be able

to have a race on the paddle boats or just take advantage of

the rowing club’s balcony whilst chatting away taking in the

scenic views of the River Torrens and Adelaide Oval.

We hope to see you there.

Sundowner’s Networking Evening4 February 2016

“SPECTACULAR” is the first word that comes to mind when

describing the venue for SA’s first networking event of the year!

The Elder Park Café proved to be the most picturesque, tranquil

and scenic venue we have been to in Adelaide for some time.


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Divisional Partners




National Partners

Situated on the River Torrens, the evening warmed up boasting

some wonderful sunshine so we could enjoy the daylight

saving time to the maximum. After a chilly beginning to the

week casting some doubt over this outdoor event we were very

fortunate the weather turned out to be perfect!

The food and cocktail service from the friendly staff were

favourably received by the attendees. There was no shortage

of cold and hot food and some healthy fruit to finish.

It was good to see everyone have a wonderful time. As

well as people chatting, enjoying the scrumptious food and

soaking in the atmosphere. The well known Adelaide Paddle

Boats glistening on the river with the sun going down over

Adelaide Oval, provided extra fun. Fortunately no one fell into

the water whilst chasing each other (tired legs/calves the next

day) across the river… even though we were hoping to see a

funny incident.

Jane Calleja, Learning and Development Manager for NCI

Trade Credit Solutions, presented on the Work Life Balance of

day to day living. Jane had everyone participating by writing on

a card “What they think is most important thing to find time to

do in their busy lives”? It was not surprising that spending time

with the family was number 1. Jane reminded us how this must

be done to keep our lives healthy and happy. She certainly is

a leading presenter in our State and we thank her for giving us

her time.

This was a super start to 2016! We look forward to your

continued support and seeing you all at the next event.

– Functions CommitteeGail Crowder and Trevor Goodwin

George Vahaviolos, Leah Hanisch, Nancy Duong and Mark Draper.

Wade Bekesi and Mary Jeffries.

South Australia

Events Calendar11th-14th March 2016 and 18th-21st March 2016

Online CCE Exams

17th March 2016

Professional Development – St Pat’s Power PanelNAVAL MILITARY AIR FORCE CLUB

7th April 2016

Networking Breakfast

Date: TBC

Women in Credit LuncheonOLD LION HOTEL

12th May 2016

Networking YCPACATHEDRAL HOTEL

26th May 2016

Credit Symposium

17th June 2016

Function – Quiz Night


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President’s ReportWelcome to all of our Vic/Tas members, let’s hope the new year

brings exciting times.

I would like to introduce you to the Vic/Tas Counselors and

the portfolios they manage within our state divisions:

Jeff Hurst State Director

Lou Caldararo State President and Professional

Development

Charles Tims Vice President and Membership

Alison Said State Treasurer

Stacey Feaver Professional Development - Victoria

Donna Smith Editorial and Magazine

Frank Gambera Law and legislation

Louie Tzakopoulos Young Credit Professional

Rex Chang YCP committee

Amaran Navaratnam TCP committee

Patrick Barry 2015 YCP State Winner

Tony Mackwell Corporate Sponsorship

Suzanne Hughes Professional Development - Tasmania

Sherif Hasan Certified Credit Executive CCE

Neil Smith Pinnacle wards and Professional

Development Victoria Country

Robyn Erskine Finance committee

Australia Post big winners as David Condello takes out Credit Manager of the Year & Glenn Thomas accepts the High Five Award for Australia Post’s Legal Recovery Team.

Stephen Maloney (AMPAC) and Rhys Buzza (Reece Pty Ltd).

Vic/Tas Division Committee Members Lou Caldararo, Jeff Hurst, Charles Timms, Neil Smith with winner of the Consultant of the Year Award Shaun Odgers (CreditorWatch) (2nd from the right).

A happy couple – Winner Credit Supervisor of the Year Nunzo Sentinelli (M&M Electrical) and his wife Noula Sentinelli (Telstra). Our inaugural Pinnacle awards night was a great night and

was incorporated into the end of year Christmas party. I will let

the pictures tell the story. Congratulations to all the winners and

look forward to seeing you all back again at the next pinnacle

awards night.

The Calendar of events for 2016 covers a variety of topics

and events. Look forward to a seeing you at most if not all of

the events this year.

The Vic/Tas Golf Day held in February was another great

success with plenty of golf played. No one managed to get a

Hole in One on either of the two nominated holes and take

away a New Volkswagen Golf or Diamond ring. Thank you to

everyone who attended and especially to the all the Sponsors

for helping make the day such a great event.

We also had our First CCE event of the year in February and

there was keen interest by many of the attendees to complete

the CCE program. The first exam is in March and completion of

the paper there after, good luck to all. Thank you to Sharp and

Carter for their support of this event, including Stephen Carter

who spoke on The Digital Evolution and it impacts on Credit

Management. Stephen also had some great insights during the

vigorous discussion and Q&A.

I would like to take this opportunity to thank our 2016

National Partners Veda, Austral Mercantile and Dun &

Bradstreet also our State Partners NMCL and AMPC for their


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current and ongoing support. I would also like to announce

a new State Partner, Shaper and Carter. Welcome and look

forward to working together. National Collection Services leave

us as a State Partner and we thank Dale and his team for their

great support to the Vic/Tas division which we are sure will

continue in other forms.

We are always open to suggestions and feedback. If you

have any ideas for topics that will help you become better

credit professionals or if you have another idea of something

fun or informative for a social night, please let us know. Please

direct any ideas or queries to us on [email protected]

Vic/Tas Division 2015 Christmas Party and Inaugural Pinnacle AwardsApproximately 90 members and guests attended the 2015

annual Christmas Party and Inaugural Pinnacle Awards for

the Vic/Tas Division, held at Krimper in Guilford Lane. A good

time was had by all with sustenance provided while members

and guests eagerly awaited the announcement of the winners

of the 2015 Pinnacle Awards. Importantly we would like to

thank Dun & Bradstreet for sponsoring the event and for

their continued support of the AICM in general. Without

the support of suppliers like Dun & Bradstreet we would

not be able to provide members which such value at these

events. Our evening was hosted by Master of Ceremonies

Ersilia Barbone (White Cleland Lawyers) and Amit Jaiswal (realestate.com.au).

Juliette Claridge (Hallmark) and Frank Gambera (McMahon Fearnley Laywers) – Winner of Legal Representation of the Year.


Online CCE Exams

17th March 2016

Network EventTopic: Bankruptcy – The process explainedSpeaker: Ersilia Barbone (White Cleland Lawyers) Bankrupcty Specialist

VENUE: PARKVIEW HOTEL

30th March 2016

YCP Information NightLearn all you need to know to enlist in the YCP Awards program

VENUE: TBC

12th April 2016

Seminar/WorkshopTopic: Basic 101 of Credit

VENUE: TBC

21st April

Network EventTopic: Preference Payments – How to Avoid ThemSpeaker: Joseph Scarcella , Partner in the restructuring and insolvency group at Ashurst Law Firm

VENUE: PARKVIEW HOTEL

5th May 2016

Youth NetworkingTopic: Creating high performance work teams

VENUE: TBC

19th May 2016

Network EventTopic: PPS Registration Made Easy

VENUE: TBC

27th May 2016

WINC LuncheonVENUE: TBC

16th June 2016

Network EventTopic: Being Up Front- Presentation Skills

VENUE: TBC

21st July 2016

Awards Dinner: Young Credit Professional AwardsVENUE: TBC

18th August 2016

Network EventTopic: Time Management Skills

Events Calendar


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Divisional Partners

Our National, Divisional and Professional 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

Professional Partners

Neil Smith (Transurban) Vic/Tas Committee Member and

Functions Chair. Lou Caldararo Vic/Tas President made a brief

presentation, thanking the event sponsors and members and

guests for their attendance. Our congratulations go out to

the nominees and the winners for their participation in this

year’s Pinnacle Awards. Our winners were: Credit Manager

of the Year- David Condello (Australia Post), Credit Supervisor

of the Year- Nunzio Settinelli (MM Electrical), Senior Credit

Officer- Mary Petreski (Baxters Foods), Legal Representation

of the Year- Frank Gambera (McMahon Fearnley Lawyers),

External Collections Agent of the Year- Dale Hannan (National

Collection Services), Recruitment Consultant of the Year-

Lauren Pengilly (Inter Staffing), Consultant of the Year- Shaun

Odgers (CreditorWatch), The High Five! Award- Australia Post’s

National Legal Recovery Team. Many members expressed

their appreciation and enjoyment of the evening and

complimented the AICM on the event. The committee would

like to take this opportunity to thank the event organisers for

their hard work in organizing such an event,. We all appreciate

how challenging it is to come up with an event each year that

will attract more participants. A big thank you to all members

for their support in attending events during the 2015 year

and to the Committee Members and Event presenters who

volunteer their time to bring valuable education, interesting

Darin Milner (Dunn & Bradstreet) Event Sponsor with David Condello (Australia Post) Winner Credit Manager of the Year and Lou Caldararo Vic/Tas Division President.

Lauren Pengilly from Inter Staffing is presented her trophy for Recruitment Consultant of the Year by Lou Caldararo Vic/Tas Divisin President.

John Fijalski (White Cleland Laywers) finalist Legal Representive of the Year and his lovely wife Susan.

social events and support to the members of the AICM Vic/Tas

Division. We hope that 2016 will be a successful year for all.

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.


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SWestern Australia/Northern Territory

2016 and the WA Credit CommunityWelcome back Class of 2016! I trust that you all enjoyed your

Christmas & New Year festivities.

The WA Credit Community has BIG plans for 2016. We are

kicking off the year with something different. This year Barefoot

Bowls has made its way into our lives. I hope that everyone

will have a great time and learn a skill that by all accounts

demonstrates team co-operation, strategy and endeavour.

West Leederville will be the location for this year’s inaugural

event and if it ‘gets feet’ it could be the start of something very

exciting for us here in the West.

We also have our first Breakfast Club Event booked and on

its way. In March, Bankwest Economist, Alan Langford will ask

the question “Is the WA Economy in Recession?” It has been

sometime since WA presented an Economic Outlook. The

venue will be at Matilda Bay, so get in early for this one.

The big project for 2016 will be our search for the WA Young

Credit Professional. I know we are getting in early but this

is a quest for the best. We are hunting out great operators,

with sound skills in collection, good judgement and a hint of

personality to represent the WA Credit Community during

the National Conference. Take a look around your credit

department. If you have, or know someone that you think

has something special in Credit, please encourage them to

nominate!

This is only the beginning for The West Australian Credit

Community. We are determined to get back on track and lead

from the front where we can. I encourage every one of our

members and supporters to get involved with TEAM WA – it’s

really going places.

Christmas on the Bay 2015The West Australian landscape never ceases to amaze me.

Our Christmas on the Bay at South of Perth Yacht Club did not

disappoint. The view across the water to the City of Perth was

a great backdrop for our Credit Family to enjoy the start of the

Festive Season. It was my first Christmas as President and it

was very special. There were many new people to meet and

plenty of supporters to thank. I believe we even had our first

WA Credit Community Selfie. Roll on 2016, we can’t wait to

meet you!

New Councilor Profile

Damien BarrPosition: Sales Manager at Austral Mercantile Collections

I joined Austral Collections

in 2015 as the WA Sales

Manager and have recently

been appointed as a WA

Councillor. I’ve always lived

in Perth and have a vast

network across the state

with a solid background in

marketing and advertising.

Since coming on board it’s been with great pleasure that I’ve

gotten to know the AICM team in WA and really excited to work


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as a councillor to grow the WA division with Lisa and the team.

I have a passion for meeting new people and always exploring

ways to help their businesses with their internal processes

and also provide opportunities for them to learn more about

credit and our industry. 2016 is shaping up to be a fantastic

year in WA as we explore ways to grow the AICM division and

provide our members opportunities to learn more about the

credit industry. I’m really looking forward to meeting existing

members and welcoming new members as we move through

the year with our great events planned for 2016.

The Young Credit Professional of the Year AwardWith the YCPA 2015 a distant memory it’s time to start

looking for our next Credit Professional Superstars of 2016.

The Young Credit Professional Award is looking for credit

professionals under 30 that are ready to showcase their credit

talent. If you are reading this and think….I‘m under 30, I’m a

credit professional and I think it’s about time my talents are

showcased or have a talented credit superstar in your team

then read on!

Byron Savage, Simon Williams, Paul Saunders, Tom Concannon and Kim Valenti.

Lauren Marsh, Raffaele Di Renzo, Lauren O’Hearn.

L-R Romina Stephan, Rae Vaisey, Tara Evitt, Donna Trezise, Mel Cooper, Karen Vogels, Lisa Marr MICM.

The Candidates

Over the years we have had Credit Controllers, Accounts

Receivable Officers & Business owners all go through to the

National Conference representing WA. What did they all have

in common? They were passionate about Credit Management.

They were looking for an opportunity to further their career.

They were wanting to meet some of the most experienced and

decorated members of the industry and had the desire to be

awarded one of the highest honours in Credit Management in

Australia. Are you always striving to deliver the best results in

your position? Do you think outside the box or are you always

on the lookout for different and innovative ways to manage

your credit portfolio? Are you confident and up to date with

legislative policy that impacts credit? These are just a few of the

qualities that the YCPA Panel Judges are looking for in the next

YCPA contender. Past winners for WA have said:

“If you’re under 30 and work in the credit industry, you need

to apply for this award. Just the experience of being a finalist is

invaluable” – Tamera Russell YCPA WA Winner 2014

“Any young credit professionals that are thinking about

involving themselves in the AICM or the YCPA should jump right

in, it’s an amazing experience and one that you will remember

forever” – David Brennan YCPA WA Winner 2015

The Process

To be in the running to represent WA a short application is

required with a resume, copies of any qualifications and/or awards

and a letter from your employer/supervisor confirming your

position. The application form can be downloaded from the AICM

website. If you are selected as a WA Finalist you will be invited

to attend an interview. The panel will assess each candidate

on their individual merits within their own field of expertise.

The questions will be designed to provide you the opportunity

to demonstrate your knowledge, experience, ambitions and

passion for the Credit Industry. As a WA Finalist you will receive a

complimentary invitation to attend the WA YCPA function, where

the Division winner will be announced. State winners will win

travel, accommodation and registration to the 2016 AICM National

Conference which is being held in SeaWorld QLD. The National

YCPA winner receives a $1,000 cash prize and AICM Professional

Development award to the value of $2,000.


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The Panel

The judging panel will consist of three members, two from the

AICM Council and a D&B representative (as the YCPA Sponsor).

All members have a long career in the credit industry but

started out just like many YCPA candidates.

The Opportunity

Being part of the YCPA process gives you and your employer a

great platform to showcase your talents to the wider Australian

Credit Community. The judging panel and AICM Council

provide great support and assistance throughout the process.

If you are successful and go on to represent WA at the National

Conference you will be rubbing shoulders with some of the

most successful credit professionals in the country as well as

hearing from highly respected and accomplished speakers in

the credit and finance sectors.

So what are you waiting for? Applications close on the 31st of

March 2016. We are looking forward to hearing from you!

WA AICM Members – Christmas on the Bay.

WA AICM Members – Christmas on the Bay.


Divisional Partners




National PartnersCaption


Online CCE Exams

April 2016

Credit ToolboxVENUE: QBE CONFERENCE ROOM

May 2016

Networking BreakfastVENUE: MATILDA BAY RESTAURANT

June 2016


July 2016

YCPA DinnerVENUE: THE CROWN

August 2016

WINCVENUE: TBC

September 2016


October 2016

Sponsors LunchVENUE: TBC

November 2016

Credit ToolboxVENUE: TBC

Events Calendar


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SNew Members

QUEENSLANDChristine Funnell Wholesale Rental Finance Pty Ltd

Matthew Hudson SV Partners

Shireen Long DSS Law Pty Ltd

NEW SOUTH WALESRichard Andjelkovic BOC Limited

Apoorva Apoorva BOC Limited

Aruni Ariyaratne BOC Limited

Dale Austin BOC Limited

Sheree Averillo Brickworks Limited

Christopher Broad Vodafone Hutchinson Australia Pty Ltd

Luke Brothers BOC Limited

Narsi Burju Vodafone Hutchinson Australia Pty Ltd

Charlene Cartes Brickworks Building Products Pty Ltd

Carol Cassidy Vodafone Hutchinson Australia Pty Ltd

Amanda Consiglio Vodafone Hutchinson Australia Pty Ltd

Roslyn Dearnley Atlas Copco Australia Pty Ltd

Indri Dharma BOC Limited

Anita Dominello LG Electronics Australia Pty Ltd

Joseph D’Souza Atlas Copco Australia Pty Ltd

Patricia Eastcott BOC Limited

Matthew Egan Vodafone Hutchinson Australia Pty Ltd

Biliana Entchev BOC Limited

Aileen Faleono BOC Limited

Margaret Gardiner Atlas Copco Australia Pty Ltd

Khush Grewal Viadux Pty Ltd

Bhavna Gupta BOC Limited

Montana Hanley BOC Limited

Jacqueline Hutson BOC Limited

Dianne Isaac BOC Limited

Catherine James Actron Engineering Pty Ltd

Jessica Komolos Atlas Copco Australia Pty Ltd

Nancy Ling BOC Limited

Gio Maniacop BOC Limited

Bradley Morgan BOC Limited

Can Ozdemir Atlas Copco Australia Pty Ltd

Rohan Pal BOC Limited

Sharon Seaton Brickworks Building Products Pty Ltd

Sofia Singh Brickworks Building Products Pty Ltd

Bianca Tayler Brickworks Building Products Pty Ltd

Ruth Thomason Vodafone Hutchinson Australia Pty Ltd

Miroslav Todorovic BOC Limited

Lloma Vining Atlas Copco Australia Pty Ltd

Christopher Williams Arrium Limited

Samantha Wright Brickworks Limited

CORPORATE MEMBER

Bartier Perry Pty Ltd

VICTORIA/TASMANIAShonna Berthelsen Brickworks Building Products Pty Ltd

Michelle Challis The Challis Group

Lawrance Chen Cummins South Pacific Pty Ltd

Joseph Collidge Vodafone Hutchinson Australia Pty Ltd

Meecah Cooper Vodafone Hutchinson Australia Pty Ltd

Margaret Herold Cummins South Pacific Pty Ltd

Timothy Holden Foremans Business Services

Kylie Jones PFD Food Services Pty Ltd

Hollie Kane Rea Group Pty Ltd

David Mackintosh AG Coombs Servicing

Nicholas Mann Caltex Australia Petroleum Pty Ltd

Peter Millidonis Cummins South Pacific Pty Ltd

Jan Palmer CPA Australia

Margeaux Prinsloo Cummins South Pacific Pty Ltd

Jeanine Purdie Business Credit Solutions Pty Ltd

Lynn Ruddell B.J. Ball Pty Ltd

Atul Sharma Cummins South Pacific Pty Ltd

Nadine Sharp Cummins South Pacific Pty Ltd

Matthew Smith Cummins South Pacific Pty Ltd

Gillian Thomas UXC Keystone

Maxine Vallance Ambulance Victoria

Agatha Zaloumis BASF Australia Ltd

SOUTH AUSTRALIAJacob Alexander Credit Solutions Pty Ltd

Edith Chau National Credit Insurance

(Brokers) Pty Ltd

Daniel Mackintosh National Credit Insurance

(Brokers) Pty Ltd

Courtney McDonald Lynch Meyer Lawyers

Tate O’Connor National Credit Management Limited

Kerry Pearce Kemps Credit Solutions

Maxine Williams Kemps Credit Solutions

Kirsty Wright Credit Solutions

WESTERN AUSTRALIAChris Bond Baycorp Australia

David Green Intertek Commodities Australasia

Steven Lamb Brickworks Building Products Pty Ltd

NEW MEMBERS

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

2015, January and February 2016

Venue:

Sea World12 - 14 October

2016

ConferenceConference2016 National2016 National

See you at AICM’s

2016NATIONAL

Conference

Visit aicm.com.au

for details and earlybird registrations

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