C.A.R.E. Employment & Training Services Pty Ltd, in the matter of C.A.R.E. Employment & Training Services Pty Ltd [2020] FCA 374

C.A.R.E. Employment & Training Services Pty Ltd, in the matter of C.A.R.E. Employment & Training Services Pty Ltd [2020] FCA 374

Leave was granted because the Second Plaintiffs were appropriate persons to act as voluntary administrators and deed administrators: no conflict was shown, proponent funding did not itself compromise independence and would be disclosed, and the liquidators had already undertaken substantial work that a new administrator would otherwise need to repeat. Orders dispensing with the first creditors' meeting and altering the s 439A meeting timing were appropriate because creditors had been informed through reports and correspondence, there were only two known creditors likely to remain the same in the administration, no objection had been raised, and the estimated cost of a first meeting would...

Jurisdiction
Australia
Judgment Date
19 March 2020
Procedural Posture
Corporations Application for Leave for Liquidators to Become Voluntary Administrators and Deed Administrators, and for Orders Altering the Operation of Pt 5.3 a of the Corporations Act 2001 (cth) / Determined on the Papers
Outcome
Orders made granting leave for the Second Plaintiffs to appoint themselves as voluntary administrators and deed administrators, altering the operation of Pt 5.3A, making costs an expense in the liquidation, adjourning the application otherwise sine die, and granting liberty to apply.
Legal Topics
['liquidators Appointing Themselves as Voluntary Administrators' 'deed of Company Arrangement' 'dispensing With First Meeting of Creditors' 'court Power to Alter Operation of Pt 5.3 A' 'creditor Returns and Funding of Administration']
['corporations Law' 'corporate Insolvency'] ['liquidators Appointing Themselves as Voluntary Administrators' 'deed of Company Arrangement' 'dispensing With First Meeting of Creditors' 'court Power to Alter Operation of Pt 5.3 A' 'creditor Returns and Funding of Administration']

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Procedural Posture

Corporations Application for Leave for Liquidators to Become Voluntary Administrators and Deed Administrators, and for Orders Altering the Operation of Pt 5.3 a of the Corporations Act 2001 (cth) / Determined on the Papers

Legal Issues

  1. 1 ['Whether leave should be granted under s 436B(2) of the Corporations Act 2001 (Cth) for the liquidators to appoint themselves as voluntary administrators of the company.' 'Whether leave should be granted for the liquidators to be appointed as administrators of any deed of company arrangement entered into by the company.' 'Whether orders should be made under s 447A(1) dispensing with the first meeting of creditors under s 436E and altering the timing for the meeting under s 439A.']

Ratio Decidendi

Leave was granted because the Second Plaintiffs were appropriate persons to act as voluntary administrators and deed administrators: no conflict was shown, proponent funding did not itself compromise independence and would be disclosed, and the liquidators had already undertaken substantial work that a new administrator would otherwise need to repeat. Orders dispensing with the first creditors' meeting and altering the s 439A meeting timing were appropriate because creditors had been informed through reports and correspondence, there were only two known creditors likely to remain the same in the administration, no objection had been raised, and the estimated cost of a first meeting would...

Court Disposition

Orders made granting leave for the Second Plaintiffs to appoint themselves as voluntary administrators and deed administrators, altering the operation of Pt 5.3A, making costs an expense in the liquidation, adjourning the application otherwise sine die, and granting liberty to apply.

Orders

  • ['Pursuant to s 436B(2) of the Corporations Act 2001 (Cth), leave be granted for the Second Plaintiffs to appoint themselves as voluntary administrators of C.A.R.E. Employment & Training Services Pty Ltd (in liquidation) ACN 106 294 080 (First Plaintiff).' 'Pursuant to s 436B(2) of the Act, leave be granted for the...