In the matter of FMA Holdings Group Pty Ltd (In Liquidation) [2018] NSWSC 2057

In the matter of FMA Holdings Group Pty Ltd (In Liquidation) [2018] NSWSC 2057

The payments made by FMA Holdings Group Pty Ltd to Banq Accountants and Advisors Pty Ltd are voidable as insolvent uncommercial transactions entered into within two years before the relation back day, because there was no commercial basis for them, they were disproportionate to any accountancy fees, the company benefited negligibly, and the company is presumed to have been insolvent due to a lack of financial records.

Parties
First Plaintiff: Ozem Azzam and Jason Bing-Fai Tang as Joint and Several Liquidators of FMA Holdings Group Pty Ltd (In Liquidation); Second Plaintiff: FMA Holdings Group Pty Ltd (In Liquidation); Defendant: Banq Accountants and Advisors Pty Ltd
Jurisdiction
Australia
Judgment Date
27 March 2018
Procedural Posture
Creditor's Voluntary Winding Up Proceeding / Judgment After Undefended Hearing
Outcome
Judgment for plaintiffs
Legal Topics
Winding Up, Voidable Transactions, Insolvent Transactions, Uncommercial Transactions, Director Related Transactions
Corporations Winding Up Voidable Transactions Insolvent Transactions Uncommercial Transactions Director Related Transactions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Ozem Azzam and Jason Bing-Fai Tang as Joint and Several Liquidators of FMA Holdings Group Pty Ltd (In Liquidation)

First Plaintiff

FMA Holdings Group Pty Ltd (In Liquidation)

Second Plaintiff

Banq Accountants and Advisors Pty Ltd

Defendant

Procedural Posture

Creditor's Voluntary Winding Up Proceeding / Judgment After Undefended Hearing

Legal Issues

  1. 1 Whether three payments made by FMA Holdings Group Pty Ltd to Banq Accountants and Advisors Pty Ltd are voidable as insolvent uncommercial transactions under Corporations Act 2001
  2. 2 Whether the payments were made when the company was insolvent and were not for reasonable commercial purposes
  3. 3 Whether interest is recoverable on the payments

Ratio Decidendi

The payments made by FMA Holdings Group Pty Ltd to Banq Accountants and Advisors Pty Ltd are voidable as insolvent uncommercial transactions entered into within two years before the relation back day, because there was no commercial basis for them, they were disproportionate to any accountancy fees, the company benefited negligibly, and the company is presumed to have been insolvent due to a lack of financial records.

Court Disposition

Judgment for plaintiffs

Orders

  • The defendant is to pay the plaintiffs the sum of $919,621.12.
  • The defendant is to pay the plaintiffs' costs on the indemnity basis.