Deppeler, in the matter of Deppeler (No 2) [2017] FCA 978

Deppeler, in the matter of Deppeler (No 2) [2017] FCA 978

Section 1560 of the Corporations Act applies to any old Act registrant who does not apply for renewal before expiry, regardless of reason, and after expiry is taken to be registered as a liquidator subject to a current condition not to accept new appointments. Breach of that condition (by accepting new appointments) must be dealt with under disciplinary provisions, but does not invalidate the liquidator's status or actions in the relevant period. The declarations were appropriate given the applicants' circumstances and the statutory scheme.

Parties
Plaintiff: Nathan Lee Deppeler; Plaintiff: Nicholas David Cooper; Amicus Curiae: Australian Securities and Investments Commission
Jurisdiction
Australia
Judgment Date
04 August 2017
Procedural Posture
Corporations – Application for Order Regarding Liquidator Registration and Effectiveness of Appointments/actions Between Expiration and Renewal / Final Judgment and Orders With Published Reasons
Outcome
Declarations made in both proceedings for the benefit of the plaintiffs. Costs reserved. Liberty to apply granted.
Legal Topics
Liquidator Registration, Transitional Provisions, Statutory Construction
Corporations Law Liquidator Registration Transitional Provisions Statutory Construction

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Parties

Nathan Lee Deppeler

Plaintiff

Nicholas David Cooper

Plaintiff

Australian Securities and Investments Commission

Amicus Curiae

Procedural Posture

Corporations – Application for Order Regarding Liquidator Registration and Effectiveness of Appointments/actions Between Expiration and Renewal / Final Judgment and Orders With Published Reasons

Legal Issues

  1. 1 Whether s 1560 of the Corporations Act applies where an insolvency practitioner inadvertently fails to renew registration
  2. 2 Consequences of accepting appointments as external administrator after expiry of registration
  3. 3 Proper construction of conditions imposed by s 1560 on old Act registrants

Ratio Decidendi

Section 1560 of the Corporations Act applies to any old Act registrant who does not apply for renewal before expiry, regardless of reason, and after expiry is taken to be registered as a liquidator subject to a current condition not to accept new appointments. Breach of that condition (by accepting new appointments) must be dealt with under disciplinary provisions, but does not invalidate the liquidator's status or actions in the relevant period. The declarations were appropriate given the applicants' circumstances and the statutory scheme.

Court Disposition

Declarations made in both proceedings for the benefit of the plaintiffs. Costs reserved. Liberty to apply granted.

Orders

  • Between 3 May 2017 and 10 July 2017 the Plaintiff is taken to have been registered as a liquidator under Subdivision B of Division 20 of the Insolvency Practice Schedule (Corporations) of the Corporations Act 2001 (Cth).
  • The Plaintiff's registration as a liquidator for the period 3 May 2017 to 2 May 2020 is not subject to (a) the condition expressed at section 1560(2) of the Act (that an 'old Act registrant' must not accept further appointments) or (b) section 1560(4) of the Act.