Griffiths, in the matter of Auscabs Payment Solutions Pty Ltd [2017] FCA 1626

Griffiths, in the matter of Auscabs Payment Solutions Pty Ltd [2017] FCA 1626

It was appropriate to appoint Mr Barnden as liquidator because he was a registered liquidator, had consented, had no identified disqualifying relationship apart from the disclosed indirect financial interest, would use staff already familiar with the liquidations without charging for familiarisation arising from his appointment, and his appointment would benefit creditors by preserving continuity, avoiding wasted expenditure, avoiding meetings in voluntary liquidations, and minimising disruption.

Jurisdiction
Australia
Judgment Date
19 December 2017
Procedural Posture
Corporations Application for Appointment of New Liquidator Upon Resignation of Existing Liquidator / Originating Process Returnable Instanter; Final Orders Made
Outcome
Orders substantially as sought made; second plaintiff appointed to fill vacancies arising upon the first plaintiff's resignation; no order as to costs.
Legal Topics
['appointment of Liquidator' 'resignation of Liquidator' 'vacancy in Office of Liquidator' "creditors' Voluntary Liquidation" "members' Voluntary Liquidation"]
['corporations' 'corporate Insolvency'] ['appointment of Liquidator' 'resignation of Liquidator' 'vacancy in Office of Liquidator' "creditors' Voluntary Liquidation" "members' Voluntary Liquidation"]

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Procedural Posture

Corporations Application for Appointment of New Liquidator Upon Resignation of Existing Liquidator / Originating Process Returnable Instanter; Final Orders Made

Legal Issues

  1. 1 ["Whether the vacancies arising upon the first plaintiff's resignation as liquidator should be filled by the second plaintiff." 'Whether the second plaintiff should be appointed notwithstanding any financial interest arising from remuneration or expenses owed to the first plaintiff in his capacity as liquidator.']

Ratio Decidendi

It was appropriate to appoint Mr Barnden as liquidator because he was a registered liquidator, had consented, had no identified disqualifying relationship apart from the disclosed indirect financial interest, would use staff already familiar with the liquidations without charging for familiarisation arising from his appointment, and his appointment would benefit creditors by preserving continuity, avoiding wasted expenditure, avoiding meetings in voluntary liquidations, and minimising disruption.

Court Disposition

Orders substantially as sought made; second plaintiff appointed to fill vacancies arising upon the first plaintiff's resignation; no order as to costs.

Orders

  • ['The originating process be returnable instanter.' 'Pursuant to s 437A of the Corporations Act 2001 (Cth) (the Act) and ss 90-15(1) and 90-15(3)(c) of Sch 2 to the Act, the vacancies which will arise upon the resignation of the first plaintiff as liquidator of the companies listed in Sch 1 to the originating...