Sherman v Companies in Schedule One [2000] NSWSC 667

Sherman v Companies in Schedule One [2000] NSWSC 667

The orders should be made under s447A because the High Court had confirmed the existence of the power in appropriate circumstances, the administration should continue to allow the possibility of a deed of company arrangement providing some return to creditors, the short delay meant no interested person could be thought to have been affected by the technical ending of the administration, and the bank's proposed protective condition risked giving it a preferential position above other creditors.

Jurisdiction
Australia
Judgment Date
06 July 2000
Procedural Posture
Corporations; Voluntary Administration Application / Application for Orders Extending the Time for Convening and Holding the Second Meeting of Creditors
Outcome
Orders made extending the relevant voluntary administration timing requirements; bank's requested condition not imposed.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'corporations Law S447 A']
['corporations Law' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'corporations Law S447 A']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations; Voluntary Administration Application / Application for Orders Extending the Time for Convening and Holding the Second Meeting of Creditors

Legal Issues

  1. 1 ['Whether the Court should extend the time for convening the second meeting of creditors after the convening period had expired and notice of meeting was published late.' 'Whether the second meeting date could be extended where it was not within five business days of the expiration of the convening period.' "Whether a condition should be imposed preserving the second defendant bank's rights in relation to the affairs of the first defendant companies between 28 June 2000 and the date of judgment."]

Ratio Decidendi

The orders should be made under s447A because the High Court had confirmed the existence of the power in appropriate circumstances, the administration should continue to allow the possibility of a deed of company arrangement providing some return to creditors, the short delay meant no interested person could be thought to have been affected by the technical ending of the administration, and the bank's proposed protective condition risked giving it a preferential position above other creditors.

Court Disposition

Orders made extending the relevant voluntary administration timing requirements; bank's requested condition not imposed.

Orders

  • ['Orders made in accordance with the document initialled by Windeyer J and dated 6 July 2000.' 'The plaintiffs not make any charge against the first defendant companies in respect of these proceedings.' 'The exhibits can be returned.']