Strawbridge, in the matter of Animal Supplies (Wholesale) Pty Ltd (in liq) [2021] FCA 566

Strawbridge, in the matter of Animal Supplies (Wholesale) Pty Ltd (in liq) [2021] FCA 566

It was appropriate and in the interests of creditors to appoint Mr Tracy and Mr Marsden as joint and several liquidators upon Mr Strawbridge's resignation because the liquidations were at an advanced stage, the remaining tasks were generally administrative, appointment within Deloitte would preserve continuity and efficiency, a joint and several appointment would assist logistics and continuity, and Court appointment would avoid the time and cost of creditors' meetings. Leave under s. 532(2) was appropriate, if required, despite Deloitte's outstanding remuneration and disbursement claims because those claims related to work done in the liquidations and such leave is commonly granted in...

Jurisdiction
Australia
Judgment Date
26 May 2021
Procedural Posture
Corporations Insolvency Application to Appoint Replacement Joint and Several Liquidators / Uncontested Application; Orders Made 26 May 2021
Outcome
Application granted.
Legal Topics
['replacement of Liquidator' "creditors' Voluntary Liquidation" 'appointment of Joint and Several Liquidators' 'leave to Act as Liquidator Where Firm Has Outstanding Remuneration and Disbursement Claims']
['corporations' 'insolvency'] ['replacement of Liquidator' "creditors' Voluntary Liquidation" 'appointment of Joint and Several Liquidators' 'leave to Act as Liquidator Where Firm Has Outstanding Remuneration and Disbursement Claims']

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Procedural Posture

Corporations Insolvency Application to Appoint Replacement Joint and Several Liquidators / Uncontested Application; Orders Made 26 May 2021

Legal Issues

  1. 1 ["Whether the Court should appoint the Second and Third Plaintiffs as joint and several liquidators of the Companies upon the First Plaintiff's resignation under s. 499(3) of the Corporations Act 2001 (Cth) or alternatively section 90-15(1) of the Insolvency Practice Schedule (Corporations)." 'Whether, to the extent necessary, leave should be granted under s. 532(2) of the Corporations Act 2001 (Cth) for the Second and Third Plaintiffs to act despite Deloitte having outstanding remuneration and disbursement claims against the Companies.']

Ratio Decidendi

It was appropriate and in the interests of creditors to appoint Mr Tracy and Mr Marsden as joint and several liquidators upon Mr Strawbridge's resignation because the liquidations were at an advanced stage, the remaining tasks were generally administrative, appointment within Deloitte would preserve continuity and efficiency, a joint and several appointment would assist logistics and continuity, and Court appointment would avoid the time and cost of creditors' meetings. Leave under s. 532(2) was appropriate, if required, despite Deloitte's outstanding remuneration and disbursement claims because those claims related to work done in the liquidations and such leave is commonly granted in...

Court Disposition

Application granted.

Orders

  • ['Order pursuant to section 499(3) of the Corporations Act 2001 (Cth), upon the resignation of the First Plaintiff as liquidator of the Companies, that the Second and Third Plaintiffs be appointed the joint and several liquidators of each of the Companies.' 'To the extent necessary, leave granted pursuant to section...