Application of Douglas Victor Chapman [2006] NSWSC 99

Application of Douglas Victor Chapman [2006] NSWSC 99

Leave under s.206G was appropriate because the applicant's disqualification arose from financial stresses caused by marriage breakdown and an isolated guarantee liability rather than dishonest, morally reprehensible or unlawful conduct; he acted responsibly in making provision for creditors and complying with the composition; the composition produced a favourable estimated return to creditors; the company's sole shareholder supported his return to management; and public protection would not be compromised if leave were granted subject to conditions ensuring an additional Australian-resident director and preventing the applicant from being the sole signatory on company accounts.

Jurisdiction
Australia
Judgment Date
27 February 2006
Procedural Posture
Application Under S.206 G of the Corporations Act 2001 (cth) for Leave to Manage a Particular Corporation / Ex Tempore Judgment
Outcome
Leave granted to be a director of and manage The Marketing Store Worldwide Pty Limited, subject to conditions.
Legal Topics
['director Disqualification' 'leave to Manage a Corporation' 'part X Deed of Arrangement' 'protective Purpose of Disqualification']
['corporations Law' 'bankruptcy'] ['director Disqualification' 'leave to Manage a Corporation' 'part X Deed of Arrangement' 'protective Purpose of Disqualification']

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Procedural Posture

Application Under S.206 G of the Corporations Act 2001 (cth) for Leave to Manage a Particular Corporation / Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the applicant should be granted leave under s.206G of the Corporations Act 2001 (Cth) to be a director of and manage The Marketing Store Worldwide Pty Limited despite disqualification under s.206B(4).' 'Whether protection of the public, creditors, shareholders and others dealing with the company would be compromised by granting leave.' 'Whether conditions should be imposed on any grant of leave.']

Ratio Decidendi

Leave under s.206G was appropriate because the applicant's disqualification arose from financial stresses caused by marriage breakdown and an isolated guarantee liability rather than dishonest, morally reprehensible or unlawful conduct; he acted responsibly in making provision for creditors and complying with the composition; the composition produced a favourable estimated return to creditors; the company's sole shareholder supported his return to management; and public protection would not be compromised if leave were granted subject to conditions ensuring an additional Australian-resident director and preventing the applicant from being the sole signatory on company accounts.

Court Disposition

Leave granted to be a director of and manage The Marketing Store Worldwide Pty Limited, subject to conditions.

Orders

  • ['David Victor Chapman be granted leave to be a director of and to manage the company known as "The Marketing Store Worldwide Pty Limited" (ACN 085 045 503), such grant being on condition that at all times while disqualification under s.206B(4) continues: (a) at least one director of that company in addition to the...