Teleminex No Liability, in the matter of Teleminex No Liability [2005] FCA 705

Teleminex No Liability, in the matter of Teleminex No Liability [2005] FCA 705

Because the failure to hold the second meeting by 22 September 2004 resulted from oversight, no substantial injustice or prejudice had been or was likely to be caused, and refusal of relief could cause considerable detriment by undermining the deed of company arrangement and creditors' access to the deed fund, it was just and equitable to extend the time for holding the meeting and to order that Part 5.3A operate as if the meeting could be held within six business days of the end of the convening period.

Jurisdiction
Australia
Judgment Date
13 May 2005
Procedural Posture
Corporations Application Concerning Voluntary Administration and Deed of Company Arrangement / Application for Orders Extending Time and Modifying Operation of Part 5.3 a of the Corporations Act; Orders Made
Outcome
Application granted; time extended and orders made under the Corporations Act.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' 'extension of Time' 'deed of Company Arrangement' 'relief for Procedural Irregularity']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'second Meeting of Creditors' 'extension of Time' 'deed of Company Arrangement' 'relief for Procedural Irregularity']

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Procedural Posture

Corporations Application Concerning Voluntary Administration and Deed of Company Arrangement / Application for Orders Extending Time and Modifying Operation of Part 5.3 a of the Corporations Act; Orders Made

Legal Issues

  1. 1 ['Whether the period during which the second meeting of creditors in the voluntary administration had to be held should be extended up to 5 pm on 23 September 2004.' 'Whether Part 5.3A of the Corporations Act should operate in relation to the Company as if s 439A(2) required the second meeting to be held within six business days of the end of the convening period.' 'Whether the failure to hold the second meeting by 22 September 2004 was an oversight causing no substantial injustice or prejudice.']

Ratio Decidendi

Because the failure to hold the second meeting by 22 September 2004 resulted from oversight, no substantial injustice or prejudice had been or was likely to be caused, and refusal of relief could cause considerable detriment by undermining the deed of company arrangement and creditors' access to the deed fund, it was just and equitable to extend the time for holding the meeting and to order that Part 5.3A operate as if the meeting could be held within six business days of the end of the convening period.

Court Disposition

Application granted; time extended and orders made under the Corporations Act.

Orders

  • ["Grants leave to the Plaintiffs to file an originating process in the form initialled by Justice Emmett and dated with today's date, returnable instanter." 'Orders, pursuant to section 1322(4)(d) of the Corporations Act, that the period during which the second meeting of creditors in the voluntary administration of...