Minus, in the matter of ABCD Corporation Pty Ltd [2019] FCA 1523

Minus, in the matter of ABCD Corporation Pty Ltd [2019] FCA 1523

Leave was granted because Mr Minus discharged the onus of showing that an exception to the protective legislative policy was justified. His bankruptcy arose from inability to pay legal costs and not corporate mismanagement; there was no evidence of dishonesty, moral culpability, abuse of corporate structures, loss to the public or unscrupulous activity; he had a long history of company directorship and professional public service; the companies were small family companies with limited trading, interconnected activities, small shareholdings and few customers and suppliers; and any risk to the public was not real in the circumstances, particularly given the trustee in bankruptcy's control...

Jurisdiction
Australia
Judgment Date
05 September 2019
Procedural Posture
Application Under S 206 G(1) of the Corporations Act 2001 (cth) by an Undischarged Bankrupt for Leave to Manage Four Proprietary Companies / Final Judgment and Orders After Hearing
Outcome
Leave granted to manage the four companies, subject to a trading condition for ABCD; no order as to costs.
Legal Topics
['leave for Bankrupt to Manage Corporations' 'automatic Disqualification From Managing Corporations' 'protection of the Public Interest' 'family Companies' 'corporate Management']
['corporations Law' 'corporate Insolvency'] ['leave for Bankrupt to Manage Corporations' 'automatic Disqualification From Managing Corporations' 'protection of the Public Interest' 'family Companies' 'corporate Management']

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Procedural Posture

Application Under S 206 G(1) of the Corporations Act 2001 (cth) by an Undischarged Bankrupt for Leave to Manage Four Proprietary Companies / Final Judgment and Orders After Hearing

Legal Issues

  1. 1 ['Whether Mr Minus should be granted leave under s 206G(1) of the Corporations Act 2001 (Cth) to manage APLUS Pty Ltd, Dispute Resolution Associates Pty Ltd, ABCD Corporation Pty Ltd, and Mediation & Arbitration Centre Pty Ltd.' 'Whether the legislative policy of protecting the public justified refusing or limiting leave, including because of the evidence about the companies, proposed supervision, prior findings, and hardship.' 'Whether leave to manage ABCD Corporation Pty Ltd should be subject to a condition limiting its trading activity.']

Ratio Decidendi

Leave was granted because Mr Minus discharged the onus of showing that an exception to the protective legislative policy was justified. His bankruptcy arose from inability to pay legal costs and not corporate mismanagement; there was no evidence of dishonesty, moral culpability, abuse of corporate structures, loss to the public or unscrupulous activity; he had a long history of company directorship and professional public service; the companies were small family companies with limited trading, interconnected activities, small shareholdings and few customers and suppliers; and any risk to the public was not real in the circumstances, particularly given the trustee in bankruptcy's control...

Court Disposition

Leave granted to manage the four companies, subject to a trading condition for ABCD; no order as to costs.

Orders

  • ['Pursuant to s 206G of the Corporations Act 2001 (Cth) the applicant, Derek Michael Minus, be granted leave to manage ABCD Corporation Pty Ltd ACN 133 338 682, APLUS Pty Ltd ACN 003 190 190, Dispute Resolution Associates Pty Ltd ACN 090 594 451, and Mediation & Arbitration Centre Pty Ltd ACN 608 133 768.' 'The...