In the matter of 7 Steel Distribution Pty Limited (in liquidation) (receivers and managers appointed) [2013] NSWSC 669

In the matter of 7 Steel Distribution Pty Limited (in liquidation) (receivers and managers appointed) [2013] NSWSC 669

The Court may approve a liquidator's entry into a funding agreement and retainer under s 477(2B) where satisfied the decision is not improper, ill-advised, or in bad faith, and is the best course in the circumstances, but should not grant a s 511 direction that might supplant the liquidators' commercial judgment or responsibility.

Jurisdiction
Australia
Judgment Date
17 May 2013
Procedural Posture
Application in Liquidation Proceedings / Hearing and Determination of Application for Approval Under S 477(2 B) Corporations Act 2001 (cth) and Judicial Advice Under S 511
Outcome
Orders made authorising the liquidators to enter into the funding and retainer agreements; application for a s 511 direction refused.
Legal Topics
["liquidators' Powers" 'litigation Funding' 'judicial Advice' 'retainer Agreements' 'winding Up']
['corporations Law' 'insolvency Law'] ["liquidators' Powers" 'litigation Funding' 'judicial Advice' 'retainer Agreements' 'winding Up']

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 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application in Liquidation Proceedings / Hearing and Determination of Application for Approval Under S 477(2 B) Corporations Act 2001 (cth) and Judicial Advice Under S 511

Legal Issues

  1. 1 ['Whether the liquidators should be authorised to enter into a funding agreement under s 477(2B) of the Corporations Act 2001 (Cth)' 'Whether the liquidators should be authorised to enter into a retainer agreement with solicitors under s 477(2B)' 'Whether a direction under s 511 of the Corporations Act should be given that the liquidators are justified in entering into the funding agreement' 'Whether intervening creditors are entitled to be heard in such an application']

Ratio Decidendi

The Court may approve a liquidator's entry into a funding agreement and retainer under s 477(2B) where satisfied the decision is not improper, ill-advised, or in bad faith, and is the best course in the circumstances, but should not grant a s 511 direction that might supplant the liquidators' commercial judgment or responsibility.

Court Disposition

Orders made authorising the liquidators to enter into the funding and retainer agreements; application for a s 511 direction refused.

Orders

  • ['Approval under s 477(2B) Corporations Act for the liquidators to enter into the Funding Agreement.' 'Approval under s 477(2B) Corporations Act for the liquidators to enter into a retainer agreement with Kemp Strang solicitors.' 'The costs and expenses of the application to be the costs of the liquidation.' 'Orders...