In the Matter of Chilia Properties Pty Ltd (Administrator Appointed) Sutherland, Roderick MacKay [1997] FCA 209

In the Matter of Chilia Properties Pty Ltd (Administrator Appointed) Sutherland, Roderick MacKay [1997] FCA 209

Leave and a validating declaration were appropriate because the disqualifying circumstance was only that the applicant's partner had briefly been appointed a director to facilitate the appointment of an administrator, which created no serious possibility of conflict, Southern Dragon's objections did not show any substantial conflict affecting the applicant's administration, and s 448C could be applied so as to permit leave after the event with validation under s 1322.

Jurisdiction
Australia
Judgment Date
28 February 1997
Procedural Posture
Application for Leave Under S 448 C(1) of the Corporations Law and for a Declaration Under S 1322 Concerning Appointment and Acts as Administrator / Extempore Reasons for Judgment; Orders Made
Outcome
Application granted; leave granted under s 448C(1), declaration made under s 1322(4)(a), and service directed.
Legal Topics
['voluntary Administration' 'administrator Disqualification' 'conflict of Interest' 'nunc Pro Tunc Leave' 'validation of Acts Under S 1322']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'administrator Disqualification' 'conflict of Interest' 'nunc Pro Tunc Leave' 'validation of Acts Under S 1322']

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Procedural Posture

Application for Leave Under S 448 C(1) of the Corporations Law and for a Declaration Under S 1322 Concerning Appointment and Acts as Administrator / Extempore Reasons for Judgment; Orders Made

Legal Issues

  1. 1 ['Whether the applicant, being a partner of an officer of the company, could be granted leave under s 448C(1) of the Corporations Law to consent to be appointed and act as administrator.' 'Whether the appointment of the applicant as administrator and his acts in that office should be declared not invalid under s 1322 by reason of contravention of s 448C.' 'Whether the objections raised by Southern Dragon Australia Pty Limited showed a real conflict of interest warranting refusal of leave.']

Ratio Decidendi

Leave and a validating declaration were appropriate because the disqualifying circumstance was only that the applicant's partner had briefly been appointed a director to facilitate the appointment of an administrator, which created no serious possibility of conflict, Southern Dragon's objections did not show any substantial conflict affecting the applicant's administration, and s 448C could be applied so as to permit leave after the event with validation under s 1322.

Court Disposition

Application granted; leave granted under s 448C(1), declaration made under s 1322(4)(a), and service directed.

Orders

  • ['Leave be granted to the applicant pursuant to s 448C(1) of the Corporations Law to consent to be appointed and to act as administrator of Chilia Properties Pty Limited.' 'Declare under s 1322(4)(a) of the Corporations Law that the appointment of the applicant as administrator of Chilia Properties Pty Limited and...