Schwarz, in the matter of Gordon Smith Marketing Pty Ltd (Administrator Appointed) [2016] FCA 1378

Schwarz, in the matter of Gordon Smith Marketing Pty Ltd (Administrator Appointed) [2016] FCA 1378

Leave was appropriate because Mr Schwarz's prior role as administrator and liquidator gave him detailed knowledge of the companies' affairs, his appointment would promote continuity and reduce duplication and cost, and no material conflict, threat to independence or matter offensive to commercial morality was shown. The ancillary orders were appropriate because creditors had already had extensive opportunities to familiarise themselves with the companies' affairs, a prompt meeting would be convened, and a first meeting and ordinary notice processes would impose avoidable costs.

Jurisdiction
Australia
Judgment Date
17 November 2016
Procedural Posture
Corporations Application for Leave for Liquidator to Appoint Himself as Administrator / Ex Parte Interlocutory Application
Outcome
Application granted; orders made granting leave for the plaintiff to appoint himself as voluntary administrator and making ancillary orders under s 447A.
Legal Topics
['voluntary Administration' 'liquidator Appointment of Administrator' 'leave Under S 436 B(2)(g)' 'modification of Part 5.3 A' "creditors' Meetings" 'notice to Creditors']
['corporations Law' 'corporate Insolvency'] ['voluntary Administration' 'liquidator Appointment of Administrator' 'leave Under S 436 B(2)(g)' 'modification of Part 5.3 A' "creditors' Meetings" 'notice to Creditors']

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Procedural Posture

Corporations Application for Leave for Liquidator to Appoint Himself as Administrator / Ex Parte Interlocutory Application

Legal Issues

  1. 1 ['Whether leave should be granted under s 436B(2)(g) of the Corporations Act 2001 (Cth) for Mr Schwarz, as liquidator, to appoint himself as administrator of the companies.' 'Whether ancillary orders should be made under s 447A of the Corporations Act 2001 (Cth), including dispensing with the first meeting of creditors and modifying notice requirements.']

Ratio Decidendi

Leave was appropriate because Mr Schwarz's prior role as administrator and liquidator gave him detailed knowledge of the companies' affairs, his appointment would promote continuity and reduce duplication and cost, and no material conflict, threat to independence or matter offensive to commercial morality was shown. The ancillary orders were appropriate because creditors had already had extensive opportunities to familiarise themselves with the companies' affairs, a prompt meeting would be convened, and a first meeting and ordinary notice processes would impose avoidable costs.

Court Disposition

Application granted; orders made granting leave for the plaintiff to appoint himself as voluntary administrator and making ancillary orders under s 447A.

Orders

  • ['The interlocutory process be made returnable instanter.' 'Pursuant to s 436B(2)(g) of the Corporations Act 2001 (Cth), leave was granted for the plaintiff to appoint himself as voluntary administrator of each company listed in the originating application.' 'Pursuant to s 447A of the Corporations Act 2001 (Cth),...