In the matter of Gerard Cassegrain & Co Pty Limited (in liquidation) [2013] NSWSC 257

In the matter of Gerard Cassegrain & Co Pty Limited (in liquidation) [2013] NSWSC 257

Approval under s 477(2B) was granted as the funding agreement was in the company's best interests and a proper exercise of the liquidator's power, no error of law, want of good faith or lack of prudence being found; a direction under s 479(3) was also appropriate in the circumstances to protect the liquidator.

Jurisdiction
Australia
Judgment Date
18 February 2013
Procedural Posture
Interlocutory Application / Approval of Litigation Funding Agreement and Direction Under Corporations Act
Outcome
Application granted
Legal Topics
['winding Up' "liquidators' Powers" 'litigation Funding Agreement' 'court Approval Under S 477(2 B) Corporations Act' 'court Direction Under S 479(3) Corporations Act']
['corporations Law' 'equity'] ['winding Up' "liquidators' Powers" 'litigation Funding Agreement' 'court Approval Under S 477(2 B) Corporations Act' 'court Direction Under S 479(3) Corporations Act']

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Procedural Posture

Interlocutory Application / Approval of Litigation Funding Agreement and Direction Under Corporations Act

Legal Issues

  1. 1 ["Whether entry into litigation funding agreement is a proper exercise of liquidator's power under s 477(2B) Corporations Act 2001 (Cth)" 'Whether a direction should be given under s 479(3) Corporations Act 2001 (Cth) protecting the liquidator from a claim of breach of duty in respect of the funding agreement']

Ratio Decidendi

Approval under s 477(2B) was granted as the funding agreement was in the company's best interests and a proper exercise of the liquidator's power, no error of law, want of good faith or lack of prudence being found; a direction under s 479(3) was also appropriate in the circumstances to protect the liquidator.

Court Disposition

Application granted

Orders

  • ['Approval granted under s 477(2B) Corporations Act 2001 (Cth) for entry into funding agreement in or substantially in the form of the Funding Agreement.' 'Direction given under s 479(3) Corporations Act 2001 (Cth) that the liquidator is justified in entering into the Funding Agreement.' 'Confidentiality orders made...