Lo v Nielsen & Moller (Autoglass) (NSW) Pty Ltd [2008] NSWSC 407

Lo v Nielsen & Moller (Autoglass) (NSW) Pty Ltd [2008] NSWSC 407

It is just and beneficial, in the circumstances of the case, to appoint Mr Lord and Mr Crowe-Maxwell as additional liquidators with powers confined to investigating specified matters, where significant concerns exist about asset transfers and creditor disadvantage, the existing liquidator has no funds or independent support, and the creditor applicant is willing to fund the investigations on terms ensuring financial separation.

Parties
Plaintiff: Maggie Yeung Lo; First Defendant: Nielsen & Moller Autoglass (NSW) Pty Limited; Second Defendant: Christopher Thomas Wykes (as liquidator of Nielsen & Moller Autoglass (NSW) Pty Limited)
Jurisdiction
Australia
Judgment Date
02 May 2008
Procedural Posture
Application in Liquidation Proceedings / Judgment on Application for Appointment of Special Purpose Liquidators
Outcome
Order for appointment of special purpose liquidators to be made, subject to terms ensuring financial independence and undertakings to the court.
Legal Topics
Winding Up, Appointment of Special Purpose Liquidators, Voluntary Administration, Creditors Voluntary Liquidation
Corporations Law Equity Winding Up Appointment of Special Purpose Liquidators Voluntary Administration Creditors Voluntary Liquidation

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Parties

Maggie Yeung Lo

Plaintiff

Nielsen & Moller Autoglass (NSW) Pty Limited

First Defendant

Christopher Thomas Wykes (as liquidator of Nielsen & Moller Autoglass (NSW) Pty Limited)

Second Defendant

Procedural Posture

Application in Liquidation Proceedings / Judgment on Application for Appointment of Special Purpose Liquidators

Legal Issues

  1. 1 Whether the court has jurisdiction to appoint special purpose liquidators in a creditors voluntary winding up
  2. 2 Whether special purpose liquidators should be appointed in light of concerns regarding the existing liquidator and need for investigations
  3. 3 Appropriate financial arrangements for funding special purpose liquidators

Ratio Decidendi

It is just and beneficial, in the circumstances of the case, to appoint Mr Lord and Mr Crowe-Maxwell as additional liquidators with powers confined to investigating specified matters, where significant concerns exist about asset transfers and creditor disadvantage, the existing liquidator has no funds or independent support, and the creditor applicant is willing to fund the investigations on terms ensuring financial separation.

Court Disposition

Order for appointment of special purpose liquidators to be made, subject to terms ensuring financial independence and undertakings to the court.

Orders

  • Mr Lord and Mr Crowe-Maxwell to be appointed as additional liquidators for purposes set out in Schedule 1.
  • Plaintiff to give undertaking to fund Stage 1 and Stage 2 investigations via special purpose liquidators and meet associated legal costs.