Singleton, in the matter of Mad Canoe Advertising Pty Ltd (in Liq) [2009] FCA 625

Singleton, in the matter of Mad Canoe Advertising Pty Ltd (in Liq) [2009] FCA 625

The winding up was terminated because the Court was satisfied that MCA was solvent and that the Trust was also solvent, that creditor opposition did not warrant refusal, that undertakings and proposed unit holder arrangements would address debts and liquidation expenses, and that the trust deed issue concerning MCA's disqualification as trustee did not prevent termination because MCA would in one way or another resume its trustee position, including by reappointment if necessary.

Jurisdiction
Australia
Judgment Date
09 June 2009
Procedural Posture
Application to Terminate a Voluntary Winding Up Under the Corporations Act 2001 (cth) / Reasons for Judgment Following Orders Made on 29 May 2009
Outcome
Voluntary winding up terminated.
Legal Topics
['termination of Voluntary Winding Up' 'company Trustee of Unit Trust' 'solvency' 'effect of Liquidation on Trustee Office']
['corporations' 'insolvency' 'trusts'] ['termination of Voluntary Winding Up' 'company Trustee of Unit Trust' 'solvency' 'effect of Liquidation on Trustee Office']

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Procedural Posture

Application to Terminate a Voluntary Winding Up Under the Corporations Act 2001 (cth) / Reasons for Judgment Following Orders Made on 29 May 2009

Legal Issues

  1. 1 ['Whether the Court should exercise power under s 511(1)(b) of the Corporations Act 2001 (Cth) to terminate a voluntary winding up by reference to the power in s 482(1).' 'Whether Mad Canoe Advertising Pty Ltd and the Mad Canoe Advertising Unit Trust were solvent.' "Whether the company's disqualification as trustee under the Unit Trust Deed upon liquidation prevented termination of the winding up or resumption of its trustee role."]

Ratio Decidendi

The winding up was terminated because the Court was satisfied that MCA was solvent and that the Trust was also solvent, that creditor opposition did not warrant refusal, that undertakings and proposed unit holder arrangements would address debts and liquidation expenses, and that the trust deed issue concerning MCA's disqualification as trustee did not prevent termination because MCA would in one way or another resume its trustee position, including by reappointment if necessary.

Court Disposition

Voluntary winding up terminated.

Orders

  • ['The winding up of Mad Canoe Advertising Pty Ltd (in Liquidation) be terminated on and from 29 May 2009.' "The Plaintiffs' costs of this proceeding be an expense in the winding-up." 'These orders be entered forthwith.']