Gadsden v MacKinnon (Liquidator), in the matter of Allibi Pty Ltd (in liq) [2023] FCA 647

Gadsden v MacKinnon (Liquidator), in the matter of Allibi Pty Ltd (in liq) [2023] FCA 647

The making and persisting with a demand for $69m against directors, without proper foundation and based on speculative allegations and threats of reporting to ASIC, constituted an abuse of process. This conduct was inconsistent with the liquidators' obligations as officers of the court and warranted removal to maintain confidence in the administration.

Jurisdiction
Australia
Judgment Date
15 June 2023
Procedural Posture
Application by Directors and a Creditor to Replace External Administrators (liquidators) / Final Judgment
Outcome
Liquidators removed; new liquidators appointed.
Legal Topics
['removal and Replacement of Liquidators' 'abuse of Process' 'director Duties' 'court Supervision of External Administrators']
['corporations' 'insolvency'] ['removal and Replacement of Liquidators' 'abuse of Process' 'director Duties' 'court Supervision of External Administrators']

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 by Directors and a Creditor to Replace External Administrators (liquidators) / Final Judgment

Legal Issues

  1. 1 ['Whether liquidators should be removed for abuse of process and lack of impartiality/objectivity' 'Whether making and persisting with a demand for $69m against directors was proper' 'Whether liquidators failed in their duty as officers of the court']

Ratio Decidendi

The making and persisting with a demand for $69m against directors, without proper foundation and based on speculative allegations and threats of reporting to ASIC, constituted an abuse of process. This conduct was inconsistent with the liquidators' obligations as officers of the court and warranted removal to maintain confidence in the administration.

Court Disposition

Liquidators removed; new liquidators appointed.

Orders

  • ['Mr Hamish MacKinnon and Mr Nicholas Giasoumi cease to be external administrators of Allibi Pty Ltd (in liquidation).' 'Mr Craig Crosbie and Mr Robert Ditrich be appointed liquidators of Allibi Pty Ltd (in liquidation).' 'Parties to file and exchange written submissions about costs within 7 days.']