Harris (Trustee for the Nedyah Investment Trust) v Evans, in the matter of Canford Property Group Pty Ltd [2018] FCA 1856

Harris (Trustee for the Nedyah Investment Trust) v Evans, in the matter of Canford Property Group Pty Ltd [2018] FCA 1856

Given the serious breakdown in trust and confidence between shareholders and directors, the existence of significant disputes over alleged questionable transactions and removal of Mr Harris as director, the lack of confidence in the company’s management, and the risk to assets, the statutory criteria for appointment of a provisional liquidator were met; less intrusive measures would not suffice.

Parties
Plaintiff: Gregory John Harris as Trustee for the Nedyah Investment Trust; First Defendant: Roland James Evans; Second Defendant: Tracey Lisa Evans as Trustee for the Evans Family Trust; Third Defendant: Canford Property Group Pty Ltd ACN 168 875 205
Jurisdiction
Australia
Judgment Date
23 November 2018
Procedural Posture
Corporations – Appointment of Provisional Liquidator / Interlocutory Application for Appointment of Provisional Liquidator
Outcome
Application for appointment of a provisional liquidator granted.
Legal Topics
Provisional Liquidators, Wind Up on Just and Equitable Ground, Oppression Remedy, Appointment of Liquidator, Shareholder Disputes
Corporations Law Insolvency Provisional Liquidators Wind Up on Just and Equitable Ground Oppression Remedy Appointment of Liquidator Shareholder Disputes

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Parties

Gregory John Harris as Trustee for the Nedyah Investment Trust

Plaintiff

Roland James Evans

First Defendant

Tracey Lisa Evans as Trustee for the Evans Family Trust

Second Defendant

Canford Property Group Pty Ltd ACN 168 875 205

Third Defendant

Procedural Posture

Corporations – Appointment of Provisional Liquidator / Interlocutory Application for Appointment of Provisional Liquidator

Legal Issues

  1. 1 Whether a provisional liquidator should be appointed to Canford Property Group Pty Ltd pending hearing of winding up application
  2. 2 Whether there are reasonable prospects of a winding up order being made
  3. 3 Whether the company's assets are in jeopardy

Ratio Decidendi

Given the serious breakdown in trust and confidence between shareholders and directors, the existence of significant disputes over alleged questionable transactions and removal of Mr Harris as director, the lack of confidence in the company’s management, and the risk to assets, the statutory criteria for appointment of a provisional liquidator were met; less intrusive measures would not suffice.

Court Disposition

Application for appointment of a provisional liquidator granted.

Orders

  • Anne-Marie Jane Barley of AMB Insolvency Services Pty Ltd appointed as official liquidator of Canford Property Group Pty Ltd ACN 168 875 205 provisionally pursuant to s 472(2) of the Corporations Act 2001 (Cth).
  • Costs reserved.