Mansfield (Trustee) v Cruz [2018] FCA 1525

Mansfield (Trustee) v Cruz [2018] FCA 1525

The agreed facts and supporting material were sufficient to establish that the impugned transactions (transfers, gifts and mortgages) were made with intent to defeat creditors, rendering them void under s 121 Bankruptcy Act and/or s 37A Conveyancing Act, and supporting orders for constructive trusts and repayment. In the circumstances, and due to Mr Mansfield’s undertakings and given that Thousand Angeles Island did not have a director but was not trading, it was appropriate to order correction of the share register under s 175 of the Corporations Act.

Jurisdiction
Australia
Judgment Date
09 October 2018
Procedural Posture
Corporations, Bankruptcy and Insolvency / Final Judgment After Agreed Resolution and Court Ordered Declarations
Outcome
Declarations granted and orders made by consent, including transfers declared void, constructive trusts imposed, repayment ordered, share register corrected, and proceeding otherwise dismissed.
Legal Topics
['voidable Transactions' 'alienation of Property to Defraud Creditors' 'constructive Trusts' 'correction of Share Register']
['corporations Law' 'bankruptcy and Insolvency' 'equity and Trusts'] ['voidable Transactions' 'alienation of Property to Defraud Creditors' 'constructive Trusts' 'correction of Share Register']

Case Brief

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Procedural Posture

Corporations, Bankruptcy and Insolvency / Final Judgment After Agreed Resolution and Court Ordered Declarations

Legal Issues

  1. 1 ['Whether certain transactions between the parties were void against the trustee in bankruptcy under s 121 of the Bankruptcy Act 1966 (Cth) and/or s 37A of the Conveyancing Act 1919 (NSW)' 'Whether mortgages and share transfers constituted alienations with intent to defraud creditors' 'Whether it is appropriate to order correction of the share register under s 175 of the Corporations Act 2001 (Cth) where there is no current director']

Ratio Decidendi

The agreed facts and supporting material were sufficient to establish that the impugned transactions (transfers, gifts and mortgages) were made with intent to defeat creditors, rendering them void under s 121 Bankruptcy Act and/or s 37A Conveyancing Act, and supporting orders for constructive trusts and repayment. In the circumstances, and due to Mr Mansfield’s undertakings and given that Thousand Angeles Island did not have a director but was not trading, it was appropriate to order correction of the share register under s 175 of the Corporations Act.

Court Disposition

Declarations granted and orders made by consent, including transfers declared void, constructive trusts imposed, repayment ordered, share register corrected, and proceeding otherwise dismissed.

Orders

  • ['JYN and JYC joined as second and third applicants, Thousand Angeles Island joined as fourth respondent.' 'Amended Application and Concise Statement taken as filed, marked as Exhibit B.' 'Declaration that transfer of $10,300,000 from Mr Yang and JYN to Nagano is void against trustee under s 121 Bankruptcy Act and s...