Hathway v Stacey Apartments Pty Ltd (In Liquidation), in the matter of Stacey Apartments Pty Ltd (In Liquidation) [2023] FCA 776

Hathway v Stacey Apartments Pty Ltd (In Liquidation), in the matter of Stacey Apartments Pty Ltd (In Liquidation) [2023] FCA 776

The statutory criteria for a pooling order under s 579E of the Corporations Act 2001 (Cth) are met: the companies form a group, all are in winding up, joint property and business was established, notice was given to creditors and no creditor, including the ATO (the principal unsecured creditor), objects. There is no material disadvantage to unsecured creditors. It is just and equitable to make the pooling and ancillary orders sought.

Jurisdiction
Australia
Judgment Date
07 July 2023
Procedural Posture
Corporations—insolvency/pooled Group Application / Judgment on Application for Pooling and Ancillary Orders
Outcome
Pooling order and ancillary statutory orders granted as sought by plaintiffs; costs orders as costs in pooled winding up.
Legal Topics
['pooling of Companies in Liquidation' 'ancillary Orders Under Corporations Act' 'costs Orders in Insolvency']
['corporations'] ['pooling of Companies in Liquidation' 'ancillary Orders Under Corporations Act' 'costs Orders in Insolvency']

Case Brief

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Procedural Posture

Corporations—insolvency/pooled Group Application / Judgment on Application for Pooling and Ancillary Orders

Legal Issues

  1. 1 ['Whether the Court should make a pooling order pursuant to s 579E of the Corporations Act 2001 (Cth) for 29 defendants in liquidation' 'Whether ancillary orders under s 579G (lodgment of combined administration returns) should be granted' 'Whether any eligible unsecured creditor would be materially disadvantaged by the pooling order']

Ratio Decidendi

The statutory criteria for a pooling order under s 579E of the Corporations Act 2001 (Cth) are met: the companies form a group, all are in winding up, joint property and business was established, notice was given to creditors and no creditor, including the ATO (the principal unsecured creditor), objects. There is no material disadvantage to unsecured creditors. It is just and equitable to make the pooling and ancillary orders sought.

Court Disposition

Pooling order and ancillary statutory orders granted as sought by plaintiffs; costs orders as costs in pooled winding up.

Orders

  • ['Pursuant to s 579E(1) of the Corporations Act 2001 (Cth), each defendant is to be a pooled group for the purposes of s 579E.' 'Pursuant to s 579G(1) of the Act, plaintiffs are required to lodge only one annual administration return and one end of administration return for the group.' 'The costs of these...