In the matter of FGM Print Pty Ltd and other Companies [2018] NSWSC 1983

In the matter of FGM Print Pty Ltd and other Companies [2018] NSWSC 1983

The Court appointed replacement liquidators from Jirsch Sutherland because doing so was in creditors' interests by reducing costs, the evidence did not show that concerns about the transactions under investigation extended beyond Ms Young, ASIC accepted that position on the evidence, creditors would be informed and regulatory scrutiny would continue, and the Court had statutory power to make the replacement and leave orders sought.

Jurisdiction
Australia
Judgment Date
14 December 2018
Procedural Posture
Corporations External Administration Application for Appointment of Replacement Liquidators / Originating Process Heard Ex Tempore; Orders Made
Outcome
Orders made appointing several persons who are partners within Jirsch Sutherland as liquidator of the several companies.
Legal Topics
['external Administration' 'liquidator Resignation' 'appointment of Replacement Liquidator' "creditors' Voluntary Liquidation" "members' Voluntary Liquidation" 'court Appointed Liquidation' 'leave to Act as Liquidator']
['corporations' 'insolvency'] ['external Administration' 'liquidator Resignation' 'appointment of Replacement Liquidator' "creditors' Voluntary Liquidation" "members' Voluntary Liquidation" 'court Appointed Liquidation' 'leave to Act as Liquidator']

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Procedural Posture

Corporations External Administration Application for Appointment of Replacement Liquidators / Originating Process Heard Ex Tempore; Orders Made

Legal Issues

  1. 1 ['Whether it was in the interests of creditors to appoint replacement liquidators from the same firm as the resigning liquidator.' 'Whether concerns about transactions under investigation involving the resigning liquidator required appointment of liquidators from another firm.' "Whether the Court had power to appoint replacement liquidators in court-appointed, creditors' voluntary and members' voluntary liquidations." 'Whether leave should be granted under s 532(2) of the Corporations Act 2001 (Cth) for persons from Jirsch Sutherland to act where the firm may be owed amounts exceeding $5000 by companies in liquidation.']

Ratio Decidendi

The Court appointed replacement liquidators from Jirsch Sutherland because doing so was in creditors' interests by reducing costs, the evidence did not show that concerns about the transactions under investigation extended beyond Ms Young, ASIC accepted that position on the evidence, creditors would be informed and regulatory scrutiny would continue, and the Court had statutory power to make the replacement and leave orders sought.

Court Disposition

Orders made appointing several persons who are partners within Jirsch Sutherland as liquidator of the several companies.

Orders

  • ["Replacement liquidators from Jirsch Sutherland appointed for the relevant companies upon Ms Young's resignation or proposed resignation." 'Leave granted under s 532(2) of the Corporations Act 2001 (Cth) for the relevant persons to act as liquidator where Jirsch Sutherland may be owed amounts exceeding $5000 by the...