In the matter of Daisytek Australia Pty Limited [2003] FCA 575

In the matter of Daisytek Australia Pty Limited [2003] FCA 575

The Administrators established sufficient grounds for extending the convening periods: the outcome of GE's application concerning the charge, the reservation of title claims, and the possible sale or investment process were matters on which creditors should be informed, and GE and H-P either consented or did not object. Section 447A(1) empowered the Court to modify how Part 5.3A operated so that the creditors' meetings could be held during the extended convening period and the five business days thereafter, because otherwise the Administrators might be forced to wait until after 4 July 2003 to no good end, and no legislative policy underlying Part 5.3A would be frustrated.

Jurisdiction
Australia
Judgment Date
04 June 2003
Procedural Posture
Corporations Application by Voluntary Administrators / Ex Parte Application for Extension of Convening Periods for Creditors' Meetings and for Related Order About Timing of Meetings
Outcome
Application granted; orders made under s 439A(6) and s 447A(1) of the Corporations Act 2001 (Cth).
Legal Topics
['voluntary Administration' 'extension of Convening Period' "creditors' Meetings" 'operation of Part 5.3 A' 'court Powers Under S 447 A']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'extension of Convening Period' "creditors' Meetings" 'operation of Part 5.3 A' 'court Powers Under S 447 A']

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Procedural Posture

Corporations Application by Voluntary Administrators / Ex Parte Application for Extension of Convening Periods for Creditors' Meetings and for Related Order About Timing of Meetings

Legal Issues

  1. 1 ['Whether the convening periods for meetings of creditors of Daisytek Australia Pty Limited and Daisytek Australia (Queensland) Pty Limited should be extended under s 439A(6) of the Corporations Act 2001 (Cth) until 4 July 2003.' "Whether s 447A(1) of the Corporations Act 2001 (Cth) empowers the Court to permit the creditors' meetings to be held during the extended convening period and the five business days thereafter, notwithstanding s 439A(2)." 'Whether discretionary considerations supported making the orders sought by the Administrators.']

Ratio Decidendi

The Administrators established sufficient grounds for extending the convening periods: the outcome of GE's application concerning the charge, the reservation of title claims, and the possible sale or investment process were matters on which creditors should be informed, and GE and H-P either consented or did not object. Section 447A(1) empowered the Court to modify how Part 5.3A operated so that the creditors' meetings could be held during the extended convening period and the five business days thereafter, because otherwise the Administrators might be forced to wait until after 4 July 2003 to no good end, and no legislative policy underlying Part 5.3A would be frustrated.

Court Disposition

Application granted; orders made under s 439A(6) and s 447A(1) of the Corporations Act 2001 (Cth).

Orders

  • ['Pursuant to s 439A(6) of the Corporations Act 2001 (Cth), the convening period for the meetings of creditors of Daisytek Australia Pty Limited and Daisytek Australia (Queensland) Pty Limited be extended up to and including Friday 4 July 2003.' 'Pursuant to s 447A(1) of the Corporations Act 2001 (Cth), the meetings...