In the Matter of LOCM Pty Ltd (Administrators Appointed) [1997] FCA 1099

In the Matter of LOCM Pty Ltd (Administrators Appointed) [1997] FCA 1099

The Court held that, by reason of the broad wording of s 447A of the Corporations Law, it had power to extend the period fixed by s 439B(2) for adjourning a creditors' meeting beyond sixty days, notwithstanding the apparently mandatory wording of s 439B(2). The Court extended the period to 24 December 1997, but not to the full duration sought, emphasising the need for administration to proceed expeditiously.

Jurisdiction
Australia
Judgment Date
22 October 1997
Procedural Posture
Corporations Law Voluntary Administration / Application to Extend Time for Adjourned Creditors' Meeting Under S 439 B(2)
Outcome
Application granted in part
Legal Topics
['voluntary Administration' 'extension of Time' 'application of S 447 A' "adjournment of Creditors' Meetings"]
['corporations Law'] ['voluntary Administration' 'extension of Time' 'application of S 447 A' "adjournment of Creditors' Meetings"]

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Procedural Posture

Corporations Law Voluntary Administration / Application to Extend Time for Adjourned Creditors' Meeting Under S 439 B(2)

Legal Issues

  1. 1 ["Whether the Court may order that the time limit provided by s 439B(2) be extended to a date more than sixty days after the first day upon which the creditors' meeting was held" 'Interpretation and scope of s 447A of the Corporations Law']

Ratio Decidendi

The Court held that, by reason of the broad wording of s 447A of the Corporations Law, it had power to extend the period fixed by s 439B(2) for adjourning a creditors' meeting beyond sixty days, notwithstanding the apparently mandatory wording of s 439B(2). The Court extended the period to 24 December 1997, but not to the full duration sought, emphasising the need for administration to proceed expeditiously.

Court Disposition

Application granted in part

Orders

  • ['The period fixed by s 439B(2) of the Corporations Law for adjournment of the meeting held on 26 August 1997 is extended to 24 December 1997.' 'Leave is reserved to any person claiming to be interested, including the Australian Securities Commission, to apply to vary this order on 48 hours written notice to the...