Lock, in the matter of Lock [2021] FCA 682

Lock, in the matter of Lock [2021] FCA 682

The orders were appropriate because Mr Sheahan was a registered liquidator with ability and capacity to discharge the functions, Mr Fryer also had ability and capacity to continue as trustee, there was no evidence of prejudice to the liquidations or bankrupt estates, continuity would save time and expense, ASIC did not propose to intervene, no other person sought to be heard, and creditors would receive notice and liberty to apply.

Jurisdiction
Australia
Judgment Date
04 June 2021
Procedural Posture
Uncontested Application for Replacement of Liquidator and Trustee of Bankrupt Estates / Application Heard Instanter; Ex Tempore Reasons for Judgment and Orders Made
Outcome
Application granted; orders made appointing Mr Sheahan as liquidator of three companies, accepting Mr Lock's resignation as trustee of the bankrupt estates, dispensing with specified requirements, and making consequential orders with no order as to costs.
Legal Topics
['replacement of Court Appointed Liquidator' 'resignation of Registered Trustee in Bankruptcy' 'appointment of External Administrator' 'dispensation From Creditor Information Requirements' 'notice to Creditors']
['bankruptcy and Insolvency' 'corporations and Corporate Insolvency'] ['replacement of Court Appointed Liquidator' 'resignation of Registered Trustee in Bankruptcy' 'appointment of External Administrator' 'dispensation From Creditor Information Requirements' 'notice to Creditors']

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Procedural Posture

Uncontested Application for Replacement of Liquidator and Trustee of Bankrupt Estates / Application Heard Instanter; Ex Tempore Reasons for Judgment and Orders Made

Legal Issues

  1. 1 ["Whether the vacancy or pending vacancy in the office of liquidator of three companies caused by Mr Lock's resignation should be filled by appointing Mr Sheahan." 'Whether requirements under r 70-30 of the Insolvency Practice Rules (Corporations) 2016 should be dispensed with in relation to the three companies.' "Whether the Court should accept Mr Lock's resignation as trustee of the bankrupt estates." 'Whether Mr Sheahan and Mr Fryer should continue as sole trustees where they had been joint and several trustees with Mr Lock.']

Ratio Decidendi

The orders were appropriate because Mr Sheahan was a registered liquidator with ability and capacity to discharge the functions, Mr Fryer also had ability and capacity to continue as trustee, there was no evidence of prejudice to the liquidations or bankrupt estates, continuity would save time and expense, ASIC did not propose to intervene, no other person sought to be heard, and creditors would receive notice and liberty to apply.

Court Disposition

Application granted; orders made appointing Mr Sheahan as liquidator of three companies, accepting Mr Lock's resignation as trustee of the bankrupt estates, dispensing with specified requirements, and making consequential orders with no order as to costs.

Orders

  • ['The application be heard instanter.' 'Pursuant to s 473A(1)(a) of the Corporations Act 2001 (Cth) and s 90-15(3)(c) of the Insolvency Practice Schedule (Corporations) in Schedule 2 to the Corporations Act, the vacancy in the office of liquidator of CAD Cleaning Pty Limited (in Liquidation) (ACN 606 387 704),...