Hayes, in the matter of Dick Smith Holdings Limited (Administrators Appointed) (Receivers and Managers Appointed) (No 2) [2016] FCA 529

Hayes, in the matter of Dick Smith Holdings Limited (Administrators Appointed) (Receivers and Managers Appointed) (No 2) [2016] FCA 529

Having regard to the number of creditors, the high cost and logistical difficulty of providing full notice by post (approximately $149,280), and the evidence that many creditors can be reached electronically, the court determined that it is appropriate under s 447A(1) to modify the notice requirements so that notice of the second meetings may validly be given by a combination of email, post, website publication, and newspaper advertisement, with required documents made available online.

Jurisdiction
Australia
Judgment Date
13 May 2016
Procedural Posture
Interlocutory Application in Voluntary Administration / Orders on Interlocutory Application; Second Meeting of Creditors Notice Procedure
Outcome
Orders granted modifying notice requirements for second meeting of creditors; costs to be costs in the administration.
Legal Topics
['voluntary Administration' 'notice to Creditors' 'meetings of Creditors' 'modification of Statutory Requirements']
['corporations Law' 'insolvency'] ['voluntary Administration' 'notice to Creditors' 'meetings of Creditors' 'modification of Statutory Requirements']

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Procedural Posture

Interlocutory Application in Voluntary Administration / Orders on Interlocutory Application; Second Meeting of Creditors Notice Procedure

Legal Issues

  1. 1 ['Whether notice of second meeting of creditors under s 439A of the Corporations Act 2001 (Cth) may validly be given by email and alternative means rather than by post to all creditors' 'Whether modifications to notice requirements are appropriate in the circumstances of this administration']

Ratio Decidendi

Having regard to the number of creditors, the high cost and logistical difficulty of providing full notice by post (approximately $149,280), and the evidence that many creditors can be reached electronically, the court determined that it is appropriate under s 447A(1) to modify the notice requirements so that notice of the second meetings may validly be given by a combination of email, post, website publication, and newspaper advertisement, with required documents made available online.

Court Disposition

Orders granted modifying notice requirements for second meeting of creditors; costs to be costs in the administration.

Orders

  • ['The interlocutory process be made returnable instanter.' 'Pursuant to s 447A(1), the requirements of s 439A(3) be modified to permit notice of the second meeting of creditors to be given by email where addresses are held, by post or facsimile otherwise, by web publication and by advertisement in The Australian.'...