Onefone Australia Pty Ltd v One.Tel Ltd [2009] NSWSC 540

Onefone Australia Pty Ltd v One.Tel Ltd [2009] NSWSC 540

Given the special purpose liquidator's lack of direct access to funds, and the impracticality of ongoing committee oversight, general liquidators should be permitted to fund the special purpose liquidator's expenses from 'free cash' as notified, bypassing prior expense screening. The special purpose liquidator should, however, report expenditures to the committee and seek court guidance if concerns are raised.

Parties
First Plaintiff: Onefone Australia Pty Limited; Second Plaintiff: DCA Resources Australia Pty Limited; Third Plaintiff: Pacific Finance Group Pty Limited; Fourth Plaintiff: Concept Systems (Australia) Pty Limited; First Defendant: One.Tel Limited (in liquidation); Second Defendant: Steven Sherman; Third Defendant: Peter Walker; Special Purpose Liquidator: Mr S M Golledge
Jurisdiction
Australia
Judgment Date
12 June 2009
Procedural Posture
Corporations Winding Up Special Purpose Liquidator Application / Application for Assessment and Funding of Special Purpose Liquidator's Expenses
Outcome
Short minutes to be brought in.
Legal Topics
Winding Up, Special Purpose Liquidator, Liquidator's Expenses
Corporations Law Insolvency Winding Up Special Purpose Liquidator Liquidator's Expenses

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Parties

Onefone Australia Pty Limited

First Plaintiff

DCA Resources Australia Pty Limited

Second Plaintiff

Pacific Finance Group Pty Limited

Third Plaintiff

Concept Systems (Australia) Pty Limited

Fourth Plaintiff

One.Tel Limited (in liquidation)

First Defendant

Steven Sherman

Second Defendant

Peter Walker

Third Defendant

Mr S M Golledge

Special Purpose Liquidator

Procedural Posture

Corporations Winding Up Special Purpose Liquidator Application / Application for Assessment and Funding of Special Purpose Liquidator's Expenses

Legal Issues

  1. 1 How should the special purpose liquidator's legal expenses for July to December 2008 be assessed and funded?
  2. 2 Should there be a particular regime in place for approval or monitoring of special purpose liquidator's future expenditures?

Ratio Decidendi

Given the special purpose liquidator's lack of direct access to funds, and the impracticality of ongoing committee oversight, general liquidators should be permitted to fund the special purpose liquidator's expenses from 'free cash' as notified, bypassing prior expense screening. The special purpose liquidator should, however, report expenditures to the committee and seek court guidance if concerns are raised.

Court Disposition

Short minutes to be brought in.