In the matter of 77738930144 Pty Limited (in liq) (formerly Commercial Indemnity Pty Ltd) [2017] NSWSC 452

In the matter of 77738930144 Pty Limited (in liq) (formerly Commercial Indemnity Pty Ltd) [2017] NSWSC 452

As the existing liquidator is unfunded and not intending to investigate transactions of concern, and since the funding structure isolates the company from further costs, it is just and beneficial to appoint a special purpose liquidator. Approval for entry into funding and costs agreements is granted under s 477(2B) given the interests of creditors and commercial circumstances. No declaratory relief is granted as the applicant seeks directions only on a commercial decision, not one concerning legal power or propriety.

Jurisdiction
Australia
Judgment Date
21 April 2017
Procedural Posture
Corporations/external Administration Application / Principal Judgment
Outcome
Orders granted as sought, save for declaratory relief; special purpose liquidator appointed and approvals granted for entering relevant agreements.
Legal Topics
['external Administration' 'appointment of Special Purpose Liquidator' 'liquidator Funding Approval' 'conflict of Interest in Appointment of Solicitors']
['corporations'] ['external Administration' 'appointment of Special Purpose Liquidator' 'liquidator Funding Approval' 'conflict of Interest in Appointment of Solicitors']

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Procedural Posture

Corporations/external Administration Application / Principal Judgment

Legal Issues

  1. 1 ['Whether it is appropriate to appoint an additional (special purpose) liquidator for specified investigations and claims relating to voidable transactions' 'Whether approval should be granted for the special purpose liquidator to enter into a funding deed and a costs agreement exceeding 3 months under s 477(2B) of the Corporations Act' 'Whether the retainer of solicitors previously retained by a creditor/contributory is appropriate in the circumstances' 'Whether declaratory relief under s 511 should be granted for entering into the agreements']

Ratio Decidendi

As the existing liquidator is unfunded and not intending to investigate transactions of concern, and since the funding structure isolates the company from further costs, it is just and beneficial to appoint a special purpose liquidator. Approval for entry into funding and costs agreements is granted under s 477(2B) given the interests of creditors and commercial circumstances. No declaratory relief is granted as the applicant seeks directions only on a commercial decision, not one concerning legal power or propriety.

Court Disposition

Orders granted as sought, save for declaratory relief; special purpose liquidator appointed and approvals granted for entering relevant agreements.

Orders

  • ['Suppression orders regarding certain confidential affidavits and exhibits under the Courts Suppression and Non-Publication Orders Act 2010 (NSW)' 'Appointment of Geoffrey Trent Hancock as special purpose liquidator for specified purposes under Corporations Act s 511' 'Order to report to creditors and Mr Cummins...