Goodin, in the matter of the Grand United Order of Free Gardeners Friendly Society Ltd (in liq) [2008] FCA 1537

Goodin, in the matter of the Grand United Order of Free Gardeners Friendly Society Ltd (in liq) [2008] FCA 1537

The Life Insurance Act 1995 (Cth) s 216 did not apply because money was unclaimed money only if a policy holder had a legal entitlement to be paid it, and it was impossible to know whether any missing member or spouse had died and therefore become entitled. The modified Sch 4 regime also did not apply because it only applied to money that before the transfer date had become payable by the Society, which could not be established. The remaining applicable provision was Corporations Act 2001 (Cth) s 544(1), because the liquidator held an unclaimed or undistributed amount of money arising from the company's property, so it had to be paid to ASIC to be dealt with under Pt 9.7.

Jurisdiction
Australia
Judgment Date
17 October 2008
Procedural Posture
Corporations Winding Up Application Concerning Unclaimed or Undistributed Money Held by a Liquidator of a Friendly Society / Reasons for Judgment Explaining Orders Made on 25 July 2008
Outcome
The Court directed the applicant to pay the current and any future additional untraceable members funeral entitlements to ASIC to be dealt with under Pt 9.7 of the Corporations Act 2001, with no order as to costs.
Legal Topics
["liquidator's Treatment of Untraceable Members Funeral Entitlements" 'application of Corporations Act 2001 (cth) S 544' 'application of Life Insurance Act 1995 (cth) S 216' 'transitional Provisions for Friendly Societies Registered as Companies']
['corporations' 'winding Up' 'friendly Societies' 'unclaimed Money'] ["liquidator's Treatment of Untraceable Members Funeral Entitlements" 'application of Corporations Act 2001 (cth) S 544' 'application of Life Insurance Act 1995 (cth) S 216' 'transitional Provisions for Friendly Societies Registered as Companies']

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Procedural Posture

Corporations Winding Up Application Concerning Unclaimed or Undistributed Money Held by a Liquidator of a Friendly Society / Reasons for Judgment Explaining Orders Made on 25 July 2008

Legal Issues

  1. 1 ['Whether the fund held by the liquidator for untraceable members funeral entitlements was unclaimed money under the Life Insurance Act 1995 (Cth) s 216.' 'Whether Sch 4 of the Corporations Act 2001 (Cth), as affected by friendly society transitional provisions, required payment under Victorian unclaimed money law.' 'Whether Corporations Act 2001 (Cth) s 544(1) required the liquidator to pay the unclaimed or undistributed amount to ASIC to be dealt with under Pt 9.7.']

Ratio Decidendi

The Life Insurance Act 1995 (Cth) s 216 did not apply because money was unclaimed money only if a policy holder had a legal entitlement to be paid it, and it was impossible to know whether any missing member or spouse had died and therefore become entitled. The modified Sch 4 regime also did not apply because it only applied to money that before the transfer date had become payable by the Society, which could not be established. The remaining applicable provision was Corporations Act 2001 (Cth) s 544(1), because the liquidator held an unclaimed or undistributed amount of money arising from the company's property, so it had to be paid to ASIC to be dealt with under Pt 9.7.

Court Disposition

The Court directed the applicant to pay the current and any future additional untraceable members funeral entitlements to ASIC to be dealt with under Pt 9.7 of the Corporations Act 2001, with no order as to costs.

Orders

  • ['The Applicant pay the amount of $124,350.00 representing the current provision for Untraceable Members Funeral Entitlements in the Management Fund of the Grand United Order of Free Gardeners Friendly Society Ltd (in Liquidation) ACN 087 648 931, to the Australian Securities and Investment Commission ("ASIC") to be...