In the matter of DH International Pty Limited (Administrators Appointed) ACN 143 461 849 [2013] NSWSC 1120

In the matter of DH International Pty Limited (Administrators Appointed) ACN 143 461 849 [2013] NSWSC 1120

The appointment of John Vouris and Bradley Tonks as administrators of DH International Pty Ltd under s 436A of the Corporations Act 2001 was not invalid by reason that only one director was in office, or that the director was not ordinarily resident in Australia, as the legislative requirement for residency and minimum numbers did not render the administrator's appointment invalid in these circumstances.

Parties
First Plaintiff: John Vouris; Second Plaintiff: Bradley John Tonks; Third Plaintiff: DH International Pty Ltd ACN 143461849; Interested Party: HDRN Pty Limited
Jurisdiction
Australia
Judgment Date
18 July 2013
Procedural Posture
Corporations List Matter (application for Declaration) / Judgment on Application for Declaration and Costs Order
Outcome
Declaration made that the administrators' appointment was not invalid. Costs of application to be costs in the administration of the third plaintiff.
Legal Topics
Appointment of Administrators, Validity of Director's Actions, Resident Director Requirements, Company Constitution Requirements
Corporations Law Insolvency Appointment of Administrators Validity of Director's Actions Resident Director Requirements Company Constitution Requirements

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Parties

John Vouris

First Plaintiff

Bradley John Tonks

Second Plaintiff

DH International Pty Ltd ACN 143461849

Third Plaintiff

HDRN Pty Limited

Interested Party

Procedural Posture

Corporations List Matter (application for Declaration) / Judgment on Application for Declaration and Costs Order

Legal Issues

  1. 1 Whether the appointment of administrators was invalid due to only one director in office
  2. 2 Whether the appointment was invalid as the director was not ordinarily resident in Australia
  3. 3 Whether breach of constitution or Corporations Act affects validity of appointment

Ratio Decidendi

The appointment of John Vouris and Bradley Tonks as administrators of DH International Pty Ltd under s 436A of the Corporations Act 2001 was not invalid by reason that only one director was in office, or that the director was not ordinarily resident in Australia, as the legislative requirement for residency and minimum numbers did not render the administrator's appointment invalid in these circumstances.

Court Disposition

Declaration made that the administrators' appointment was not invalid. Costs of application to be costs in the administration of the third plaintiff.

Orders

  • Leave granted to file and dispense with service of originating process
  • Declaration pursuant to s 447C(2) of the Corporations Act that appointment was not invalid by reason of having only one director or lack of Australian residency