Australco Industries P/L v. Weinstock, D.I. & Ors [1994] FCA 966

Australco Industries P/L v. Weinstock, D.I. & Ors [1994] FCA 966

By mid-January 1991, Yabe Constructions Pty Ltd and the associated project owners were unable to pay their debts as they became due, and the directors knew or ought to have known this when incurring the debt to Australco. The statutory conditions for liability under s 592(1) of the Corporations Law were satisfied....

Source-derived case information.

Parties
Applicant: Australco Industries Pty Limited (ACN 003 974 007); First Respondent: Daniel Isaac Weinstock; Second Respondent: Gregory Vaughan Pooley; Third Respondent: William Eric Copp
Jurisdiction
Australia
Judgment Date
13 December 1994
Procedural Posture
Corporations Liquidation Liability Proceeding / Application for Orders Under S 592 of the Corporations Law
Outcome
Judgment for applicant against respondents
Legal Topics
Director Liability, Liquidation, Insolvent Trading
Corporations Director Liability Liquidation Insolvent Trading

Source-derived case record

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Parties

Australco Industries Pty Limited (ACN 003 974 007)

Applicant

Daniel Isaac Weinstock

First Respondent

Gregory Vaughan Pooley

Second Respondent

William Eric Copp

Third Respondent

Procedural Posture

Corporations Liquidation Liability Proceeding / Application for Orders Under S 592 of the Corporations Law

Legal Issues

  1. 1 Whether directors of a company in liquidation with no assets are personally liable for its debts under s 592(1) of the Corporations Law
  2. 2 Whether, when the company incurred the debt, there were reasonable grounds to expect it would not be able to pay all its debts as and when they became due

Ratio Decidendi

By mid-January 1991, Yabe Constructions Pty Ltd and the associated project owners were unable to pay their debts as they became due, and the directors knew or ought to have known this when incurring the debt to Australco. The statutory conditions for liability under s 592(1) of the Corporations Law were satisfied. The directors are therefore jointly and severally liable for the debt.

Court Disposition

Judgment for applicant against respondents

Orders

  • Judgment for the applicant against the respondents for $68,509.50
  • The respondents are to pay the applicant's costs of the proceedings