Deputy Commissioner of Taxation v Distinctive Enterprises Pty Limited [2008] FCA 491

Deputy Commissioner of Taxation v Distinctive Enterprises Pty Limited [2008] FCA 491

Because the administrator continued to act pending determination of the review of the winding up decision with the knowledge of the parties and the Court, and because complications arose from the hiatus in his status after the winding up order, it was appropriate in all the circumstances to make orders under s 447A substantially as proposed to regularise his position, preserve relevant actions and the creditors' fee resolution, and permit reimbursement of costs as administration expenses.

Jurisdiction
Australia
Judgment Date
04 April 2008
Procedural Posture
Application Under S 447 a of the Corporations Act 2001 (cth) Concerning Operation of Part 5.3 a in Relation to a Company in Liquidation / Orders and Reasons for Judgment on 4 April 2008
Outcome
Orders made under s 447A of the Corporations Act 2001 (Cth), with no order as to costs of the notice of motion filed on 19 February 2008.
Legal Topics
['voluntary Administration' 'winding Up' 'administrator Indemnity and Remuneration' 'operation of Part 5.3 a of the Corporations Act 2001 (cth)' 'priority of Expenses in Liquidation']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'winding Up' 'administrator Indemnity and Remuneration' 'operation of Part 5.3 a of the Corporations Act 2001 (cth)' 'priority of Expenses in Liquidation']

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Procedural Posture

Application Under S 447 a of the Corporations Act 2001 (cth) Concerning Operation of Part 5.3 a in Relation to a Company in Liquidation / Orders and Reasons for Judgment on 4 April 2008

Legal Issues

  1. 1 ["Whether Part 5.3A of the Corporations Act 2001 (Cth) should operate so that the applicant is indemnified from the company's assets for debts incurred and remuneration for functions performed as administrator." "Whether the actions and operations of the applicant as voluntary administrator from 16 November 2007 to 30 November 2007 and the creditors' resolution approving administrator fees should be protected from being rendered ineffective and a nullity by the combined effect of earlier Court orders." "Whether the applicant should be reimbursed out of the company's assets for costs ordered against him on 30 November 2007."]

Ratio Decidendi

Because the administrator continued to act pending determination of the review of the winding up decision with the knowledge of the parties and the Court, and because complications arose from the hiatus in his status after the winding up order, it was appropriate in all the circumstances to make orders under s 447A substantially as proposed to regularise his position, preserve relevant actions and the creditors' fee resolution, and permit reimbursement of costs as administration expenses.

Court Disposition

Orders made under s 447A of the Corporations Act 2001 (Cth), with no order as to costs of the notice of motion filed on 19 February 2008.

Orders

  • ['Pursuant to section 447A of the Corporations Act 2001, Part 5.3A of that Act operate in relation to Distinctive Enterprises Pty Limited (in Liquidation) so that the applicant be indemnified for the purposes of 443A from the assets of the second respondent for debts of the type described in section 443A(1)(a)-(c)...