Australian Securities Commission v Solomon, Emad Kamel & Ors [1997] FCA 1444

Australian Securities Commission v Solomon, Emad Kamel & Ors [1997] FCA 1444

Mr Solomon had standing in relation to the two respondent companies of which he was a director, despite restrictions under s 471A(2) of the Corporations Law. However, evidence still shows the companies are insolvent. The delay by the ASC in progressing winding up strengthens Mr Solomon's grievance. The application to discharge provisional liquidation is adjourned to allow the ASC to take steps to wind up, failing which the application may be allowed.

Parties
Applicant: Australian Securities Commission; First Respondent: Emad Kamel Solomon; Second Respondent: Transphere (South Pacific) Pty Limited; Third Respondent: The Eddie Solomon Emporium Pty Limited; Fourth Respondent: Hot Cakes Pty Limited
Jurisdiction
Australia
Judgment Date
04 December 1997
Procedural Posture
Motion to Discharge Orders / Interlocutory
Outcome
Application adjourned
Legal Topics
Provisional Liquidation, Winding Up, Standing to Bring Proceedings
Corporations Law Insolvency Provisional Liquidation Winding Up Standing to Bring Proceedings

Case Brief

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Parties

Australian Securities Commission

Applicant

Emad Kamel Solomon

First Respondent

Transphere (South Pacific) Pty Limited

Second Respondent

The Eddie Solomon Emporium Pty Limited

Third Respondent

Hot Cakes Pty Limited

Fourth Respondent

Procedural Posture

Motion to Discharge Orders / Interlocutory

Legal Issues

  1. 1 Whether Mr Solomon has standing to bring an application to discharge the appointment of provisional liquidators.
  2. 2 Whether the provisional liquidation should be discharged given the delay in winding up proceedings.

Ratio Decidendi

Mr Solomon had standing in relation to the two respondent companies of which he was a director, despite restrictions under s 471A(2) of the Corporations Law. However, evidence still shows the companies are insolvent. The delay by the ASC in progressing winding up strengthens Mr Solomon's grievance. The application to discharge provisional liquidation is adjourned to allow the ASC to take steps to wind up, failing which the application may be allowed.

Court Disposition

Application adjourned

Orders

  • Application adjourned until 18 December 1997; if no steps are taken by the ASC by that date to advance winding up, the Court will allow Mr Solomon's application; otherwise, appropriate directions will be made. Costs to be considered on 18 December 1997.
  • Application dismissed regarding The Eddie Solomon Emporium Pty Limited for lack of standing.