Marsden v Screenmasters Australia Pty Ltd, in the matter of Cardinal Group Pty Ltd (in liq) [2015] FCA 1256

Marsden v Screenmasters Australia Pty Ltd, in the matter of Cardinal Group Pty Ltd (in liq) [2015] FCA 1256

There was no sufficient basis to order an inquiry into the liquidators' conduct; the liquidators' pursuit of proceedings, including the use of litigation funding, was reasonable and within their duties, supported by thorough investigation, creditor approval, and in the interest of adding to the creditors' pool.

Jurisdiction
Australia
Judgment Date
18 November 2015
Procedural Posture
Application Under S 536 Corporations Act 2001 (cth) (supervision of Liquidators) / Ruling on Amended Interlocutory Process Seeking Inquiry Into Conduct of Liquidators
Outcome
Application for inquiry dismissed
Legal Topics
["liquidators' Duties" 'supervision of Liquidators' 'litigation Funding' 'unfair Preference Proceedings' 'voidable Transactions']
['corporations Law' 'insolvency'] ["liquidators' Duties" 'supervision of Liquidators' 'litigation Funding' 'unfair Preference Proceedings' 'voidable Transactions']

Case Brief

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Procedural Posture

Application Under S 536 Corporations Act 2001 (cth) (supervision of Liquidators) / Ruling on Amended Interlocutory Process Seeking Inquiry Into Conduct of Liquidators

Legal Issues

  1. 1 ['Whether there was a sufficient basis to order an inquiry into the conduct of the liquidators under Corporations Act 2001 (Cth) s 536(1)(b) or s 536(3)' 'Whether the decision of the liquidators to pursue recovery proceedings, funded by a litigation funder, constituted a misuse of powers or was oppressive to the defendant']

Ratio Decidendi

There was no sufficient basis to order an inquiry into the liquidators' conduct; the liquidators' pursuit of proceedings, including the use of litigation funding, was reasonable and within their duties, supported by thorough investigation, creditor approval, and in the interest of adding to the creditors' pool.

Court Disposition

Application for inquiry dismissed

Orders

  • ['The Amended Interlocutory Process is dismissed.' "The defendant is to pay the plaintiffs' costs."]