In the matter of Ansett Australia Limited and Mentha [2002] FCA 2

In the matter of Ansett Australia Limited and Mentha [2002] FCA 2

Where records of creditor addresses are reasonably current, written notice by post is required unless cost is truly disproportionate; publication by website or newspaper alone does not satisfy statutory 'written notice', but posting single-sheet notices informing creditors of online/telephone access to full materials achieves balance between notice and cost.

Parties
Company Group/subject: Ansett Australia Limited & Ors (All Administrators Appointed); Plaintiffs/administrators: Mark Francis Xavier Mentha and Mark Anthony Korda (As Administrators); Interested Party: Australian Council of Trade Unions, twelve unions and relevant employees
Jurisdiction
Australia
Judgment Date
07 January 2002
Procedural Posture
Administration Directions Application / Final Determination; Orders on Application
Outcome
Orders made pursuant to s 447A: Pt 5.3A operates as if written notice of meeting is posted to known creditors, with accompanying documentation made available on websites and by hotline; newspaper publication required for unknown creditors; cost orders made; liberty to apply reserved.
Legal Topics
External Administration, Creditor Notices, Meeting Convening, Administrators’ Duties, Reasonable Practicability
Corporations Law External Administration Creditor Notices Meeting Convening Administrators’ Duties Reasonable Practicability

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Parties

Ansett Australia Limited & Ors (All Administrators Appointed)

Company Group/subject

Mark Francis Xavier Mentha and Mark Anthony Korda (As Administrators)

Plaintiffs/administrators

Australian Council of Trade Unions, twelve unions and relevant employees

Interested Party

Procedural Posture

Administration Directions Application / Final Determination; Orders on Application

Legal Issues

  1. 1 Proper method of giving written notice to creditors under s 439A(3) of the Corporations Act 2001 (Cth)
  2. 2 Whether notice by website/newspaper advertisement suffices for statutory written notice
  3. 3 Whether cost and administrative difficulty affect 'reasonably practicable' requirement

Ratio Decidendi

Where records of creditor addresses are reasonably current, written notice by post is required unless cost is truly disproportionate; publication by website or newspaper alone does not satisfy statutory 'written notice', but posting single-sheet notices informing creditors of online/telephone access to full materials achieves balance between notice and cost.

Court Disposition

Orders made pursuant to s 447A: Pt 5.3A operates as if written notice of meeting is posted to known creditors, with accompanying documentation made available on websites and by hotline; newspaper publication required for unknown creditors; cost orders made; liberty to apply reserved.

Orders

  • Administrators must convene the meeting by posting notice to as many creditors as reasonably practicable at least ten days before meeting.
  • Notice and accompanying reports, statements, and proxy forms need not be posted; must be made available for download on specified websites and upon request via hotline.