Interest Rates Heading South says Westpac’s Bill Evans
In an interview late last month Bill Evans said that he expects that interest rates will be cut by .25% on 7 February 2012. This will bring Australia’s official cash rate to 4%. It currently stands at 4.25%.
Mr Evans believes that rates will bottom out at about 3.75% and may then sit at that level for some time.
While Mr Evans expects our economy to continue to grow and increase that rate of growth he also pointed to the well documented risks in the global economy.
Mr Evans remarked on slowing growth in China which as dropped from 12% in 2009/2010 to 9.5 in 2010/2011 and now he expects to see no better than 7.5% growth in China this year.
Watch out for stimulus packages throughout the world.
How to raise funds for your project or business without going to a bank.
To finance an ark that size I’ll need to issue shares!
Private companies that have less than 50 non-employee shareholders can raise funds from the general public if that fund raising does not require a disclosure document to be prepared.
You should of course obtain legal advice in relation to the requirements associated with fund raising, as these requirements change from time to time however, we can give you some general information here. If you wish to raise funds you may find this short article useful. We would enjoy the opportunity to assist you.
Keep in mind that even if a disclosure document is not required there are significant risks that need to be managed in terms of, Read more 
You do not have to pay penalties!
If you are charged an extravagant fee, as a result of breaching a contract, then you should refuse to make payment without getting legal advice.
When a party to a contract breaks that contract there are consequences. If the injured party has suffered damages then that injured party can recover those damages from the defaulting party but, penalties cannot be recovered.
If for instance you agree that you will pay your phone bill within a certain time, after receiving an invoice but, you fail to make that payment on the due date, then you have broken that contract. You are in default. But what damage has the phone company suffered as a result of your late payment. Well, that depends upon the circumstances. Perhaps there is no real damage suffered at all. If so, why should you have to pay a fee which amounts to a penalty?
The Australian Consumers Association has raised awareness of fees that are imposed by banks and has made public statements about the illegality of certain fees.
There is potential for courts to rule, that fees such as: Read more
Letter to all Clients – Personal Property Securities Act (“PPSA”)
The government has introduced new legislation called the Personal Property Securities Act (“PPSA”) which is likely to come into effect on 30 January 2012. It will dramatically alter the way we deal with personal property and the way in which security over personal property can be protected.
“Personal property” is any property except land, fixtures to land and some statutory licences. For example machinery and equipment, inventory, motor vehicles, shares, book debts, receivables, stock, crops, trademarks and patents are all forms of personal property. Your family home will not be personal property under the PPSA.
The PPSA will regulate any “security interest” in personal property. The scope of what can constitute a security interest under the PPSA is wide and will include a number of interests which the current law does not recognise as security interests. If you do not protect your existing or future rights in personal property you risk losing your security interest in that property. By way of example, you could lose:
- priority over secured property to another creditor; or
- title to your property if it is left in the possession of someone else (eg. if they sell it or if they go into liquidation, voluntary administration or bankruptcy). Read more
Syndicates and Partnerships – used to fund and further, ideas!
Lots of people have great ideas but, do not have the time, the focus or the money, to implement or advance those ideas. In these times, which many business people see as, uncertain times, people are not prepared to take a risk, even if the potential reward is handsome.
There are however ways of reducing the cost and risk associated with the development of an idea, project or business, while at the same time obtaining access to a bank of ideas, knowledge and resources, at no upfront cost. Yes, less cost and a better chance of success! It is possible! Read more
How to Avoid Litigation or improve your chances.
Unless you have seen first hand, the way that legal proceedings can be built or destroyed, by a written note relating to a matter in issue, then you cannot appreciate how much lawyers and the court system love bits of paper. Written notes on bits of paper can literally determine the outcome of legal proceedings.
The absence of written notes can cause lawyers on both sides of an argument to work for days preparing affidavit material, each trying to recount, with limited success what was said. In many cases the factual debate is often won by the person with the best supporting paper. Read more
