Hurst v Bar Machiavelli Pty Limited ACN 609 268 037 (No 2) [2018] NSWSC 1549

Hurst v Bar Machiavelli Pty Limited ACN 609 268 037 (No 2) [2018] NSWSC 1549

Mr Hurst's familiarity with the affairs of the Company is a good reason for his appointment as liquidator, and the potential for dispute about his fees and costs incurred as administrator is insufficient to outweigh this. The Court has wide powers to give directions to ensure fairness in contesting such fees, and the inherent conflict is common to liquidators. Leave is granted to Mr Hurst to consent and act as liquidator under s 532(2) of the Corporations Act.

Jurisdiction
Australia
Judgment Date
09 October 2018
Procedural Posture
Corporations – Winding Up Application by Creditor / Final Determination
Outcome
Company wound up in insolvency and Mr Hurst appointed as liquidator with leave under s 532(2) of the Corporations Act.
Legal Topics
['winding Up' 'appointment, Resignation or Removal of Liquidator' 'independence of Liquidator' "creditor's Standing"]
['corporations Law' 'insolvency Law'] ['winding Up' 'appointment, Resignation or Removal of Liquidator' 'independence of Liquidator' "creditor's Standing"]

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Procedural Posture

Corporations – Winding Up Application by Creditor / Final Determination

Legal Issues

  1. 1 ['Whether the company should be wound up in insolvency' 'Whether Mr Hurst should be appointed as liquidator given potential conflict of interest due to disputed fees and costs']

Ratio Decidendi

Mr Hurst's familiarity with the affairs of the Company is a good reason for his appointment as liquidator, and the potential for dispute about his fees and costs incurred as administrator is insufficient to outweigh this. The Court has wide powers to give directions to ensure fairness in contesting such fees, and the inherent conflict is common to liquidators. Leave is granted to Mr Hurst to consent and act as liquidator under s 532(2) of the Corporations Act.

Court Disposition

Company wound up in insolvency and Mr Hurst appointed as liquidator with leave under s 532(2) of the Corporations Act.

Orders

  • ['David Anthony Hurst has leave under Corporations Act 2001 (Cth), s 532(2), to consent to be appointed, and to act as, liquidator of Bar Machiavelli Pty Ltd ACN 609 268 037.' 'The Company be wound up in insolvency.' 'Mr Hurst be appointed liquidator of the Company.']