In the matter of KASH Aboriginal Corporation ICN 108 (Administrators Appointed) No 2 [2012] FCA 789

In the matter of KASH Aboriginal Corporation ICN 108 (Administrators Appointed) No 2 [2012] FCA 789

It is appropriate to make the requested orders enabling administrators to cause the Second Applicant to enter into a loan and mortgage for urgent repairs, and to direct that administrators are not personally liable for borrowings under the relevant provisions, given the necessity of repairs, lack of alternative funding, adequacy of mortgage security, and potential personal liability for workplace health and safety risks.

Parties
First Applicant Administrator: Joanne Emily Dunn; First Applicant Administrator: Ginette Dawn Muller; Second Applicant: KASH Aboriginal Corporation ICN 108 (Administrators Appointed)
Jurisdiction
Australia
Judgment Date
27 July 2012
Procedural Posture
Interlocutory Application / Directions Sought During Voluntary Administration
Outcome
Orders granted as sought by applicants.
Legal Topics
Administrators' Liability, Loan and Mortgage During Administration, Directions Regarding Funding, Workplace Health and Safety Issues
Corporations Administrators' Liability Loan and Mortgage During Administration Directions Regarding Funding Workplace Health and Safety Issues

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Parties

Joanne Emily Dunn

First Applicant Administrator

Ginette Dawn Muller

First Applicant Administrator

KASH Aboriginal Corporation ICN 108 (Administrators Appointed)

Second Applicant

Procedural Posture

Interlocutory Application / Directions Sought During Voluntary Administration

Legal Issues

  1. 1 Whether voluntary administrators may cause an Aboriginal corporation to enter a loan and mortgage with a related entity during administration
  2. 2 Whether administrators are personally liable for monies so borrowed
  3. 3 Potential liability of administrators for workplace health and safety issues

Ratio Decidendi

It is appropriate to make the requested orders enabling administrators to cause the Second Applicant to enter into a loan and mortgage for urgent repairs, and to direct that administrators are not personally liable for borrowings under the relevant provisions, given the necessity of repairs, lack of alternative funding, adequacy of mortgage security, and potential personal liability for workplace health and safety risks.

Court Disposition

Orders granted as sought by applicants.

Orders

  • Declaration that administrators may cause corporation to enter into loan and mortgage documents (as per exhibit GDM-13) and register mortgage.
  • Direction that administrators are not liable for borrowings under loan and mortgage documents (as per exhibit GDM-13).