McEvoy, in the matter of Careers Australia Group Limited (Administrators Appointed) [2017] FCA 598

McEvoy, in the matter of Careers Australia Group Limited (Administrators Appointed) [2017] FCA 598

Given the exceptional number of creditors and the significant costs and logistical difficulties of post, modification of notice under s 447A(1) to allow notification by email, SMS, website, and newspaper publication is appropriate, pragmatic, and satisfies statutory objectives for creditor information.

Parties
First Plaintiff: David Lawrence McEvoy and Martin Ford in their capacity as joint and several voluntary administrators of Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840; Second Plaintiff: David Lawrence McEvoy and Martin Ford in their capacity as joint and several voluntary administrators of Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840; Third Plaintiff: Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840; Fourth Plaintiff: Careers Australia Institute of Training Pty Ltd (Administrators Appointed) ACN 122 082 204; Fifth Plaintiff: Careers Australia Education Institute Pty Ltd (Administrators Appointed) ACN 120 675 505; Sixth Plaintiff: Careers Australia Institute of English Pty Ltd (Administrators Appointed) ACN 010 994 582; Seventh Plaintiff: Careers Australia College of Healthcare Pty Ltd (Administrators Appointed) ACN 007 963 340; Eighth Plaintiff: Today Corp Limited (Administrators Appointed) ACN 101 631 485; Ninth Plaintiff: Australian School of Management Pty Ltd (Administrators Appointed) ACN 138 545 605; Tenth Plaintiff: Workstar Pty Ltd (Administrators Appointed) ACN 097 871 933; Eleventh Plaintiff: Global Learning Support Group Pty Ltd (Administrators Appointed) ACN 169 155 480; Twelfth Plaintiff: Cumulonimbus Investments Pty Ltd (Administrators Appointed) ACN 169 444 213; Thirteenth Plaintiff: Australian College of Applied Education Pty Ltd (Administrators Appointed) ACN 009 369 797; Fourteenth Plaintiff: Stratocumulus Pty Ltd (Administrators Appointed) ACN 611 961 196
Jurisdiction
Australia
Judgment Date
29 May 2017
Procedural Posture
Corporations Application / Application for Modification of Notice Requirements at Early Stage of Administration
Outcome
Application granted; orders as sought by the administrators made.
Legal Topics
Voluntary Administration, Notice to Creditors, Modification of Statutory Procedure
Corporations Law Insolvency Voluntary Administration Notice to Creditors Modification of Statutory Procedure

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Parties

David Lawrence McEvoy and Martin Ford in their capacity as joint and several voluntary administrators of Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840

First Plaintiff

David Lawrence McEvoy and Martin Ford in their capacity as joint and several voluntary administrators of Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840

Second Plaintiff

Careers Australia Group Limited (Administrators Appointed) ACN 122 171 840

Third Plaintiff

Careers Australia Institute of Training Pty Ltd (Administrators Appointed) ACN 122 082 204

Fourth Plaintiff

Careers Australia Education Institute Pty Ltd (Administrators Appointed) ACN 120 675 505

Fifth Plaintiff

Careers Australia Institute of English Pty Ltd (Administrators Appointed) ACN 010 994 582

Sixth Plaintiff

Careers Australia College of Healthcare Pty Ltd (Administrators Appointed) ACN 007 963 340

Seventh Plaintiff

Today Corp Limited (Administrators Appointed) ACN 101 631 485

Eighth Plaintiff

Australian School of Management Pty Ltd (Administrators Appointed) ACN 138 545 605

Ninth Plaintiff

Workstar Pty Ltd (Administrators Appointed) ACN 097 871 933

Tenth Plaintiff

Global Learning Support Group Pty Ltd (Administrators Appointed) ACN 169 155 480

Eleventh Plaintiff

Cumulonimbus Investments Pty Ltd (Administrators Appointed) ACN 169 444 213

Twelfth Plaintiff

Australian College of Applied Education Pty Ltd (Administrators Appointed) ACN 009 369 797

Thirteenth Plaintiff

Stratocumulus Pty Ltd (Administrators Appointed) ACN 611 961 196

Fourteenth Plaintiff

Procedural Posture

Corporations Application / Application for Modification of Notice Requirements at Early Stage of Administration

Legal Issues

  1. 1 Whether section 447A(1) of the Corporations Act 2001 (Cth) should be exercised to modify statutory notice requirements for creditor meetings in large-scale voluntary administration where electronic communication is proposed

Ratio Decidendi

Given the exceptional number of creditors and the significant costs and logistical difficulties of post, modification of notice under s 447A(1) to allow notification by email, SMS, website, and newspaper publication is appropriate, pragmatic, and satisfies statutory objectives for creditor information.

Court Disposition

Application granted; orders as sought by the administrators made.

Orders

  • Requirements to give notice under s 436E(3) of the Corporations Act 2001 (Cth) and the Regulations are modified to allow notices by email, SMS, website, and newspaper as specified.
  • Requirements for the second creditors meetings under s 439A are similarly modified for electronic dissemination and publication.