In the matter of Equititrust Limited (in liquidation) (Receiver Appointed) (Receivers & Managers Appointed) [2016] NSWSC 1936

In the matter of Equititrust Limited (in liquidation) (Receiver Appointed) (Receivers & Managers Appointed) [2016] NSWSC 1936

The Court held that approval under s 477(2B) of the Corporations Act 2001 is appropriate because the relevant provisions of the Haney Settlement Deed are not of a kind likely to protract the liquidation and the liquidators acted properly in considering and entering into the settlement. The commercial judgment of the liquidators should not be interfered with as it was exercised in good faith, on appropriate advice, and without error.

Parties
First Plaintiff: Blair Alexander Pleash; Second Plaintiff: Richard Albarum; Third Plaintiff: Equititrust Limited (in liquidation) (Receiver Appointed) (Receivers & Managers Appointed)
Jurisdiction
Australia
Judgment Date
12 October 2016
Procedural Posture
Corporations – Winding Up – Liquidators – Court Approval of Settlement / Application for Approval of Settlement Deed Under Corporations Act S 477(2 B)
Outcome
Application granted. Court approves entry into Haney Settlement Deed. Suppression order made.
Legal Topics
Winding Up, Liquidators, Settlement Deed, Court Approval, Suppression Order
Corporations Law Equity Winding Up Liquidators Settlement Deed Court Approval Suppression Order

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 6 Party arguments 1
Sign in to unlock

Parties

Blair Alexander Pleash

First Plaintiff

Richard Albarum

Second Plaintiff

Equititrust Limited (in liquidation) (Receiver Appointed) (Receivers & Managers Appointed)

Third Plaintiff

Procedural Posture

Corporations – Winding Up – Liquidators – Court Approval of Settlement / Application for Approval of Settlement Deed Under Corporations Act S 477(2 B)

Legal Issues

  1. 1 Whether the Court should approve the liquidators entering into a settlement deed with a former director under Corporations Act s 477(2B)
  2. 2 Whether the settlement deed is likely to protract the liquidation contrary to the interests of creditors and administration

Ratio Decidendi

The Court held that approval under s 477(2B) of the Corporations Act 2001 is appropriate because the relevant provisions of the Haney Settlement Deed are not of a kind likely to protract the liquidation and the liquidators acted properly in considering and entering into the settlement. The commercial judgment of the liquidators should not be interfered with as it was exercised in good faith, on appropriate advice, and without error.

Court Disposition

Application granted. Court approves entry into Haney Settlement Deed. Suppression order made.

Orders

  • Pursuant to Corporations Act, s 477(2B), approves plaintiffs entering into the Haney Settlement Deed.
  • Suppression order pursuant to Court Suppression and Non-publication Orders Act 2010, s 7, prohibiting publication of specified documents, effective across the Commonwealth of Australia and until 90 days after final orders in related Federal Court proceedings.