Worrell, in the matter of regulation 5.6.06 of the Corporations Regulations 2001 (No. 2) [2010] FCA 1257

Worrell, in the matter of regulation 5.6.06 of the Corporations Regulations 2001 (No. 2) [2010] FCA 1257

The Court declines to make the applicants' requested declaration regarding regulation 5.6.06 but grants relief by authorising the use of Worrells' Compound Accounts, subject to identified companies under winding-up as at 30 August 2010, undertakings, audit and notification requirements, and the temporal and legal limitations discussed. Relief from liability applies only to earlier conduct; future compliance must observe the regulatory scheme.

Parties
Applicant: Ivor Worrell; Applicant: Rajendra Kumar Khatri; Applicant: Michael John Griffin; Applicant: Michael Richard Peldan; Applicant: Morgan Gerard Lane; Applicant: Paul Eric Nogueira; Applicant: Christopher Cook; Applicant: Susan Carter; Applicant: Jason Bettles; Applicant: Christopher Darin; Applicant: Nicholas Malanos; Applicant: Michael Hird; Applicant: Paul Burness; Applicant: Con Kokkinos; Applicant: Matthew Jess; Applicant: Wayne Lamb; Intervener: Australian Securities and Investments Commission
Jurisdiction
Australia
Judgment Date
18 November 2010
Procedural Posture
Application for Declarations and Orders Under Corporations Act and Regulations / Post Judgment, Finalisation of Orders and Undertakings
Outcome
Declaration partially granted; authorisation and relief ordered; application otherwise dismissed; no costs order; parties have liberty to apply.
Legal Topics
Liquidator Accounts, Construction of Corporations Regulations 2001 Reg 5.6.06 and 5.6.09, Relief From Liability Under S 1322(4) Corporations Act 2001
Corporations Law Insolvency Liquidator Accounts Construction of Corporations Regulations 2001 Reg 5.6.06 and 5.6.09 Relief From Liability Under S 1322(4) Corporations Act 2001

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Parties

Ivor Worrell

Applicant

Rajendra Kumar Khatri

Applicant

Michael John Griffin

Applicant

Michael Richard Peldan

Applicant

Morgan Gerard Lane

Applicant

Paul Eric Nogueira

Applicant

Christopher Cook

Applicant

Susan Carter

Applicant

Jason Bettles

Applicant

Christopher Darin

Applicant

Nicholas Malanos

Applicant

Michael Hird

Applicant

Paul Burness

Applicant

Con Kokkinos

Applicant

Matthew Jess

Applicant

Wayne Lamb

Applicant

Australian Securities and Investments Commission

Intervener

Procedural Posture

Application for Declarations and Orders Under Corporations Act and Regulations / Post Judgment, Finalisation of Orders and Undertakings

Legal Issues

  1. 1 Whether regulation 5.6.06 of the Corporations Regulations 2001 requires liquidators to open a separate bank account for each company in liquidation
  2. 2 Whether the applicants' operation of a single compound account contravenes regulation 5.6.06
  3. 3 Whether discretion should be exercised under regulation 5.6.06 to allow compound accounts

Ratio Decidendi

The Court declines to make the applicants' requested declaration regarding regulation 5.6.06 but grants relief by authorising the use of Worrells' Compound Accounts, subject to identified companies under winding-up as at 30 August 2010, undertakings, audit and notification requirements, and the temporal and legal limitations discussed. Relief from liability applies only to earlier conduct; future compliance must observe the regulatory scheme.

Court Disposition

Declaration partially granted; authorisation and relief ordered; application otherwise dismissed; no costs order; parties have liberty to apply.

Orders

  • Applicants authorised under regulation 5.6.09 to operate Worrells' Compound Accounts for companies listed in Schedule 1 for purposes of winding up.
  • Applicants relieved from liability under Corporations Act 2001 for failure to comply with regulation 5.6.06 up to date of this Order for appointed companies as at 30 August 2010.