Shergold, Re P. & Anor Innes, Ex Parte T. & Anor [1986] FCA 464

Shergold, Re P. & Anor Innes, Ex Parte T. & Anor [1986] FCA 464

The application to rescind was dismissed because there was no valid meeting and no valid appointment of Mr Murphy as chairman. Mr Murphy had no connection with the matter until purportedly appointed chairman; proxies given to the chairman could not operate before a chairman was validly appointed; and the only relevant proxy then held was Mr Gaigie's, leaving him alone at the meeting for the purposes of s. 196.

Jurisdiction
Australia
Judgment Date
16 October 1986
Procedural Posture
Bankruptcy / Application to Rescind an Order Made on 3 September 1986 Setting Aside a Deed of Arrangement
Outcome
Application dismissed; the order previously made setting aside the Deed of Arrangement stands.
Legal Topics
['deed of Arrangement' 'meeting of Creditors' 'proxies' 'appointment of Chairman' 'rescission of Order']
['bankruptcy'] ['deed of Arrangement' 'meeting of Creditors' 'proxies' 'appointment of Chairman' 'rescission of Order']

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Procedural Posture

Bankruptcy / Application to Rescind an Order Made on 3 September 1986 Setting Aside a Deed of Arrangement

Legal Issues

  1. 1 ["Whether the appointment of Mr Murphy as chairman of the creditors' meeting was valid when the only relevant proxy before appointment of a chairman was held by Mr Gaigie." 'Whether there was a valid meeting of creditors under s. 196 of the Bankruptcy Act 1966 capable of electing a chairman.' 'Whether the order setting aside the Deed of Arrangement should be rescinded.']

Ratio Decidendi

The application to rescind was dismissed because there was no valid meeting and no valid appointment of Mr Murphy as chairman. Mr Murphy had no connection with the matter until purportedly appointed chairman; proxies given to the chairman could not operate before a chairman was validly appointed; and the only relevant proxy then held was Mr Gaigie's, leaving him alone at the meeting for the purposes of s. 196.

Court Disposition

Application dismissed; the order previously made setting aside the Deed of Arrangement stands.

Orders

  • ['The application to rescind the order made on 3 September 1986 be dismissed.']