In the matter of Creative Memories Australia Pty Limited (admins apptd) [2013] NSWSC 1294

In the matter of Creative Memories Australia Pty Limited (admins apptd) [2013] NSWSC 1294

Because the Company ordinarily communicated with customers and consultants by email, the customer and consultant creditor groups were very large, the amounts involved for many were small, and mailing a lengthy notice and report would impose substantial expense on an insolvent administration, it was appropriate under s 447A to permit electronic and website-based notification for customer and consultant creditors while continuing ordinary communications with employees and trade creditors. The same cost and practicality issues would arise in a liquidation following the second creditors' meeting, and the Court had jurisdiction to make orders under s 447A extending forward into such a...

Jurisdiction
Australia
Judgment Date
28 May 2013
Procedural Posture
Interlocutory Application in the Equity Division Corporations List / Application Under S 447 a of the Corporations Act 2001 (cth) for Orders Modifying Pt 5.3 a in Relation to Notice of the Second Meeting of Creditors and Related Documents
Outcome
Orders made extending forward into a liquidation allowing electronic communication for notice of second meeting of creditors. Costs of the application ordered to be costs in the administration of the Company.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' 'electronic Communication With Creditors' 'liquidation Following Voluntary Administration' 'court Orders Modifying Pt 5.3 A']
['corporations Law'] ['voluntary Administration' 'second Meeting of Creditors' 'electronic Communication With Creditors' 'liquidation Following Voluntary Administration' 'court Orders Modifying Pt 5.3 A']

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Procedural Posture

Interlocutory Application in the Equity Division Corporations List / Application Under S 447 a of the Corporations Act 2001 (cth) for Orders Modifying Pt 5.3 a in Relation to Notice of the Second Meeting of Creditors and Related Documents

Legal Issues

  1. 1 ["Whether the Court should modify Pt 5.3A of the Corporations Act 2001 (Cth) to permit notice of the second meeting of creditors and the administrators' report to be communicated electronically or by website, newspaper notice and limited mail to customer and consultant creditors." 'Whether an order allowing electronic communication should extend forward into a liquidation if creditors resolve at the second meeting that the Company should be wound up.' 'Whether costs of the application should be costs in the administration of the Company.']

Ratio Decidendi

Because the Company ordinarily communicated with customers and consultants by email, the customer and consultant creditor groups were very large, the amounts involved for many were small, and mailing a lengthy notice and report would impose substantial expense on an insolvent administration, it was appropriate under s 447A to permit electronic and website-based notification for customer and consultant creditors while continuing ordinary communications with employees and trade creditors. The same cost and practicality issues would arise in a liquidation following the second creditors' meeting, and the Court had jurisdiction to make orders under s 447A extending forward into such a...

Court Disposition

Orders made extending forward into a liquidation allowing electronic communication for notice of second meeting of creditors. Costs of the application ordered to be costs in the administration of the Company.

Orders

  • ['Orders made in accordance with the short minutes of order initialled by Black J and placed in the file, amended as discussed in submissions.' 'Order that costs of the application be costs in the administration of the Company.' 'Order that Exhibit A1 in the application be returned to the custody of solicitors...