Smith re Berowra RSL Bowling and Community Club Ltd [2006] NSWSC 780

Smith re Berowra RSL Bowling and Community Club Ltd [2006] NSWSC 780

Article 28 of the company's constitution does not inhibit the administrator from terminating bowling activities and selling the High Street property; statutory powers of the administrator take precedence over constitution provisions.

Jurisdiction
Australia
Judgment Date
08 August 2006
Procedural Posture
Application for Judicial Direction / Judgment
Outcome
Direction granted; administrator may terminate bowling activities and sell bowling greens.
Legal Topics
["administrator's Powers" 'company Constitution' 'termination of Business Activity' 'property Disposal by Administrator']
['corporations Law' 'insolvency'] ["administrator's Powers" 'company Constitution' 'termination of Business Activity' 'property Disposal by Administrator']

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Procedural Posture

Application for Judicial Direction / Judgment

Legal Issues

  1. 1 ["Whether the administrator has power to discontinue part of the company's business and dispose of property despite a constitution provision requiring promotion and maintenance of that activity"]

Ratio Decidendi

Article 28 of the company's constitution does not inhibit the administrator from terminating bowling activities and selling the High Street property; statutory powers of the administrator take precedence over constitution provisions.

Court Disposition

Direction granted; administrator may terminate bowling activities and sell bowling greens.

Orders

  • ['Direction that the plaintiff is permitted to terminate the bowling activities and sell the High Street property.']