Application by Solomons [2013] FCA 1273

Application by Solomons [2013] FCA 1273

It is appropriate for Mr Solomons and Mr De Vries to retain their positions as both liquidators of the companies and trustees in bankruptcy, as efficiency and creditor interests are best served by their continued administration, provided they undertake to approach the Court if any conflict arises that may impede their impartiality or give rise to a reasonable apprehension of such impediment.

Parties
First Plaintiff: David Solomons; Second Plaintiff: Antony De Vries
Jurisdiction
Australia
Judgment Date
15 November 2013
Procedural Posture
Application / Judgment on Application for Directions
Outcome
Orders granted as sought. Plaintiffs are justified in remaining liquidators and trustees, subject to their undertaking as to conflict.
Legal Topics
Dual Appointments, Conflict of Interest, Court Directions to Insolvency Practitioners
Corporations Law Insolvency Law Bankruptcy Law Dual Appointments Conflict of Interest Court Directions to Insolvency Practitioners

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Parties

David Solomons

First Plaintiff

Antony De Vries

Second Plaintiff

Procedural Posture

Application / Judgment on Application for Directions

Legal Issues

  1. 1 Whether the plaintiffs, as joint liquidators and trustees in bankruptcy, may continue to act in both capacities notwithstanding the potential for conflict of interest
  2. 2 Whether the Court should give directions justifying the plaintiffs in remaining in their joint roles

Ratio Decidendi

It is appropriate for Mr Solomons and Mr De Vries to retain their positions as both liquidators of the companies and trustees in bankruptcy, as efficiency and creditor interests are best served by their continued administration, provided they undertake to approach the Court if any conflict arises that may impede their impartiality or give rise to a reasonable apprehension of such impediment.

Court Disposition

Orders granted as sought. Plaintiffs are justified in remaining liquidators and trustees, subject to their undertaking as to conflict.

Orders

  • On the plaintiffs' undertaking to approach the Court if any conflict arises that may impede their impartiality as liquidators or trustees, the Court directs they are justified in remaining as liquidators and trustees in the relevant administrations.
  • Pursuant to Federal Court (Bankruptcy) Rules 2005 Rule 1.03, strict compliance with Rules 1.06 and 2.01 concerning forms does not apply to this proceeding.