Sule Arnautovic and John Kukulovski [2009] NSWSC 1444

Sule Arnautovic and John Kukulovski [2009] NSWSC 1444

Despite the invalidity of the purported appointment of administrators by a disqualified director, the Court has power under s 447A(1) to validate the appointment of the plaintiffs as voluntary administrators, and it is appropriate to exercise that power in this case where there is creditor support and no opposition.

Jurisdiction
Australia
Judgment Date
12 October 2009
Procedural Posture
Corporations Application to Validate Appointment of Administrators / Ex Tempore Judgment
Outcome
Orders granted validating the plaintiffs' appointment as voluntary administrators under s 447A(1).
Legal Topics
['validation of Appointment of Administrators' 'disqualification of Directors' 'orders Under S 447 A']
['corporations Law'] ['validation of Appointment of Administrators' 'disqualification of Directors' 'orders Under S 447 A']

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Procedural Posture

Corporations Application to Validate Appointment of Administrators / Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the Court has power under s 447A(1) of the Corporations Act 2001 (Cth) to validate the appointment of voluntary administrators made by a person disqualified from managing corporations' "Whether orders should be made validating the plaintiffs' appointment as voluntary administrators despite the original invalidity"]

Ratio Decidendi

Despite the invalidity of the purported appointment of administrators by a disqualified director, the Court has power under s 447A(1) to validate the appointment of the plaintiffs as voluntary administrators, and it is appropriate to exercise that power in this case where there is creditor support and no opposition.

Court Disposition

Orders granted validating the plaintiffs' appointment as voluntary administrators under s 447A(1).

Orders

  • ['Part 5.3A is henceforth to operate in relation to Freepeople Investments Pty Limited, Freepeople Clothing Pty Limited, Freepeople Wholesale Pty Limited, No Substitute Pty Limited, and Under Cover Pty Limited as if the resolutions purportedly adopted by Neeru Anand on 16 September 2009 appointing the plaintiffs as...