FAI General Insurance Co Ltd (In Liq) [2001] NSWSC 882

FAI General Insurance Co Ltd (In Liq) [2001] NSWSC 882

Approval under s 477(2B) was warranted because, although performance would extend beyond three months, completion of the development served a public interest in an orderly completion of a prominent unfinished development and existing apartment contracts, would likely produce a surplus of about $30 million for the otherwise impecunious group, and the proposed contract was carefully drawn and well thought out.

Jurisdiction
Australia
Judgment Date
26 September 2001
Procedural Posture
Application Under S 477(2 B) of the Corporations Act 2001 (cth) for Court Approval of Entry Into an Agreement on the Company's Behalf / Judgment on Application for Approval
Outcome
Entry into contracts approved.
Legal Topics
["liquidators' Powers" 'court Approval of Agreements' 'performance of Obligations Beyond Three Months' 'winding Up by the Court']
['corporations' 'insolvency' 'winding Up'] ["liquidators' Powers" 'court Approval of Agreements' 'performance of Obligations Beyond Three Months' 'winding Up by the Court']

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Procedural Posture

Application Under S 477(2 B) of the Corporations Act 2001 (cth) for Court Approval of Entry Into an Agreement on the Company's Behalf / Judgment on Application for Approval

Legal Issues

  1. 1 ["Whether the Court should approve, under s 477(2B) of the Corporations Act 2001 (Cth), an agreement entered into on the company's behalf where obligations under the agreement may be discharged by performance more than three months after entry into the agreement."]

Ratio Decidendi

Approval under s 477(2B) was warranted because, although performance would extend beyond three months, completion of the development served a public interest in an orderly completion of a prominent unfinished development and existing apartment contracts, would likely produce a surplus of about $30 million for the otherwise impecunious group, and the proposed contract was carefully drawn and well thought out.

Court Disposition

Entry into contracts approved.

Orders

  • ['The Court approved entry into the contracts pursuant to s 477(2B) of the Corporations Act 2001 (Cth).' 'Orders dealing with costs were made as set out in the short minute proffered to the Court.']