HIH Insurance Ltd and related matters [2004] NSWSC 5

HIH Insurance Ltd and related matters [2004] NSWSC 5

The liquidators' applications for court approval are granted because the proposed deeds are in the interests of creditors, there is no lack of good faith or error in law or principle by the liquidators, and the legal requirements for approval under ss.477(2A), 477(2B) and for directions under s.479(3) are met.

Parties
Applicants/liquidators: Anthony Gregory McGrath and Alexander Robert Mackay Macintosh; Company in Liquidation: HIH Insurance Limited (In Liquidation); Company in Liquidation: HIH Underwriting and Agency Services Limited; Company in Liquidation: HIH Casualty & General Insurance Limited; Company in Liquidation: FAI Insurance Limited; Company in Liquidation: FAI General Insurance Company Limited; Company in Liquidation: CIC Insurance Limited; Intervener/submissions: The Commissioner of the State of California Department of Insurance
Jurisdiction
Australia
Judgment Date
19 February 2004
Procedural Posture
Corporations – Winding Up – Liquidators' Application / Application for Court Approval Under S.477(2 A), S.477(2 B) and Directions Under S.479(3) of Corporations Act
Outcome
Orders made granting approvals and directions as sought by liquidators.
Legal Topics
Liquidator Powers, Approval of Compromise of Debts, Approval to Enter Into Contracts Not to Be Performed Within Three Months, Directions to Liquidators
Corporations Law Insolvency Liquidator Powers Approval of Compromise of Debts Approval to Enter Into Contracts Not to Be Performed Within Three Months Directions to Liquidators

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Anthony Gregory McGrath and Alexander Robert Mackay Macintosh

Applicants/liquidators

HIH Insurance Limited (In Liquidation)

Company in Liquidation

HIH Underwriting and Agency Services Limited

Company in Liquidation

HIH Casualty & General Insurance Limited

Company in Liquidation

FAI Insurance Limited

Company in Liquidation

FAI General Insurance Company Limited

Company in Liquidation

CIC Insurance Limited

Company in Liquidation

The Commissioner of the State of California Department of Insurance

Intervener/submissions

Procedural Posture

Corporations – Winding Up – Liquidators' Application / Application for Court Approval Under S.477(2 A), S.477(2 B) and Directions Under S.479(3) of Corporations Act

Legal Issues

  1. 1 Whether court approval should be granted under s.477(2A) and s.477(2B) for the cancellation deed and deed of indemnity
  2. 2 Whether directions under s.479(3) should be given to liquidators regarding the deeds

Ratio Decidendi

The liquidators' applications for court approval are granted because the proposed deeds are in the interests of creditors, there is no lack of good faith or error in law or principle by the liquidators, and the legal requirements for approval under ss.477(2A), 477(2B) and for directions under s.479(3) are met.

Court Disposition

Orders made granting approvals and directions as sought by liquidators.

Orders

  • Order granting approval under s.477(2A) Corporations Act for entry into cancellation and supplemental deeds as specified.
  • Order granting approval under s.477(2B) Corporations Act for entry into cancellation, supplemental and indemnity deeds as specified.