Object Design Inc v Object Design Australia Pty Ltd [1997] FCA 917

Object Design Inc v Object Design Australia Pty Ltd [1997] FCA 917

The company was not yet being wound up under the meaning of s 436A(2), so the resolution to appoint an administrator was valid notwithstanding the presence of a provisional liquidator. There is no legislative bar to appointing an administrator whilst a provisional liquidator is in office; therefore, the administrator's appointment stands and the provisional liquidator's appointment is rescinded.

Jurisdiction
Australia
Judgment Date
25 August 1997
Procedural Posture
Corporations Appointment of Provisional Liquidator and Administrator / Application for Orders Following Appointment of Provisional Liquidator and Administrator
Outcome
Appointment of provisional liquidator rescinded; appointment of administrator confirmed; no order as to costs.
Legal Topics
['provisional Liquidator' 'appointment of Administrator' 'company Insolvency' 'winding Up' "directors' Powers During Insolvency"]
['corporations Law' 'insolvency'] ['provisional Liquidator' 'appointment of Administrator' 'company Insolvency' 'winding Up' "directors' Powers During Insolvency"]

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Procedural Posture

Corporations Appointment of Provisional Liquidator and Administrator / Application for Orders Following Appointment of Provisional Liquidator and Administrator

Legal Issues

  1. 1 ['Whether the appointment of the administrator was valid under Corporations Law s 436A' 'Whether the appointment of a provisional liquidator precludes appointment of an administrator' "Whether the respondent company was 'already being wound up' within the meaning of s 436A(2)" 'Whether director could resolve to appoint an administrator while provisional liquidator in office']

Ratio Decidendi

The company was not yet being wound up under the meaning of s 436A(2), so the resolution to appoint an administrator was valid notwithstanding the presence of a provisional liquidator. There is no legislative bar to appointing an administrator whilst a provisional liquidator is in office; therefore, the administrator's appointment stands and the provisional liquidator's appointment is rescinded.

Court Disposition

Appointment of provisional liquidator rescinded; appointment of administrator confirmed; no order as to costs.

Orders

  • ['The appointment of the provisional liquidator on 24 June 1997 is rescinded.' 'Declare that Dean McVeigh has been validly appointed as administrator of the respondent pursuant to Pt 5.3A Div 2 of the Corporations Law.' 'Reserve liberty to apply for all parties as to directions in relation to the security already...