Stephen Richard O’Ryan v Gregory Ray Golding No.3 [2019] NSWSC 1372

Stephen Richard O’Ryan v Gregory Ray Golding No.3 [2019] NSWSC 1372

The orders were appropriate because the liquidators were suitable persons to act as administrators, appointment as administrators was necessary to permit the exercise of powers to raise levies under the company's constitution, the proposed process was directed to strata conversion, repairs and preservation of the property, the statutory first creditors' meeting, ordinary second meeting timing and further investigation of the company's affairs were of no utility, and Golding's objections about uncertain cost did not warrant refusing or delaying the orders.

Jurisdiction
Australia
Judgment Date
10 October 2019
Procedural Posture
Corporations Winding Up and Voluntary Administration Application / Notice of Motion by Liquidators for Approval to Enter Funding Agreement, Leave to Appoint Themselves as Voluntary Administrators, and Ancillary Orders Modifying Part 5.3 a of the Corporations Act 2001 (cth)
Outcome
Application granted; orders made approving the funding agreement, granting leave for the liquidators to appoint themselves as administrators, modifying Part 5.3A of the Corporations Act 2001 (Cth), extending time for the second meeting of creditors, and making ancillary orders.
Legal Topics
['winding Up' 'voluntary Administration' 'liquidators Appointing Themselves as Administrators' 'funding Agreement' 'modification of Part 5.3 a of the Corporations Act 2001 (cth)' "creditors' Meetings" 'strata Conversion and Building Repairs']
['corporations Law' 'insolvency' 'equity Technology and Construction List'] ['winding Up' 'voluntary Administration' 'liquidators Appointing Themselves as Administrators' 'funding Agreement' 'modification of Part 5.3 a of the Corporations Act 2001 (cth)' "creditors' Meetings" 'strata Conversion and Building Repairs']

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Procedural Posture

Corporations Winding Up and Voluntary Administration Application / Notice of Motion by Liquidators for Approval to Enter Funding Agreement, Leave to Appoint Themselves as Voluntary Administrators, and Ancillary Orders Modifying Part 5.3 a of the Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether approval should be given for the liquidators to enter into the funding agreement.' 'Whether the liquidators should have leave to appoint themselves as voluntary administrators of the company.' 'Whether the operation of Part 5.3A of the Corporations Act 2001 (Cth) should be modified to dispense with the first meeting of creditors, investigation under section 438A, and the ordinary timing requirements for the second meeting of creditors.' "Whether there should be any delay in making the orders in light of Golding's proposed appeal and stay application."]

Ratio Decidendi

The orders were appropriate because the liquidators were suitable persons to act as administrators, appointment as administrators was necessary to permit the exercise of powers to raise levies under the company's constitution, the proposed process was directed to strata conversion, repairs and preservation of the property, the statutory first creditors' meeting, ordinary second meeting timing and further investigation of the company's affairs were of no utility, and Golding's objections about uncertain cost did not warrant refusing or delaying the orders.

Court Disposition

Application granted; orders made approving the funding agreement, granting leave for the liquidators to appoint themselves as administrators, modifying Part 5.3A of the Corporations Act 2001 (Cth), extending time for the second meeting of creditors, and making ancillary orders.

Orders

  • ['Pursuant to section 477(2B) of the Corporations Act 2001 (Cth) and section 90-15(1) of Schedule 2 - Insolvency Practice Schedule (Corporations), approval is given for John Edgar McInerney and Philip Campbell-Wilson as liquidators of the third defendant to enter into the Funding Agreement in the form appearing at...