Re Builders Associated (Admin Apptd); ex parte Lord [2001] NSWSC 626

Re Builders Associated (Admin Apptd); ex parte Lord [2001] NSWSC 626

Regulation 5.6.33 of the Corporations Regulations does not prohibit an administrator from using general proxies to vote against a motion for his or her removal from office. The prohibition in subregulation (1) applies only to votes 'in favour' of resolutions placing the proxyholder in a position to receive remuneration, not to votes against their removal.

Parties
Plaintiff/administrator: John Frederick Lord; Amicus Curiae: Australian Securities and Investments Commission
Jurisdiction
Australia
Judgment Date
25 July 2001
Procedural Posture
Application for Directions (equity) / Judgment After Hearing of Application for Directions Regarding Voting at Creditors' Meeting
Outcome
Directions granted in favour of applicant (administrator).
Legal Topics
Voluntary Administration, Creditors' Meetings, Proxies, Administrator Removal
Corporate Law Insolvency Voluntary Administration Creditors' Meetings Proxies Administrator Removal

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Parties

John Frederick Lord

Plaintiff/administrator

Australian Securities and Investments Commission

Amicus Curiae

Procedural Posture

Application for Directions (equity) / Judgment After Hearing of Application for Directions Regarding Voting at Creditors' Meeting

Legal Issues

  1. 1 Whether Corporations Regulation 5.6.33 prohibits an administrator from using general proxies to vote against a motion to remove him or her from office

Ratio Decidendi

Regulation 5.6.33 of the Corporations Regulations does not prohibit an administrator from using general proxies to vote against a motion for his or her removal from office. The prohibition in subregulation (1) applies only to votes 'in favour' of resolutions placing the proxyholder in a position to receive remuneration, not to votes against their removal.

Court Disposition

Directions granted in favour of applicant (administrator).

Orders

  • Administrator directed that Regulation 5.6.33 does not prevent him from voting, under general proxies held by him, against the motion to remove him from office and appoint a replacement.