Trans Pacific Investment Corporation Pty Ltd v Rusty Rees Pty Ltd & Ors [1995] FCA 288

Trans Pacific Investment Corporation Pty Ltd v Rusty Rees Pty Ltd & Ors [1995] FCA 288

A company cannot be regarded as unable to pay its debts for the purposes of s.592 unless execution or other process issued on a judgment in favour of a creditor has been returned unsatisfied in whole or in part, as required by s.589(4).

Jurisdiction
Australia
Judgment Date
28 April 1995
Procedural Posture
Question Reserved for Consideration by Full Court / Determination of Reserved Question
Outcome
Reserved question answered: No. Applicant to pay respondents' costs.
Legal Topics
['inability to Pay Debts' 'deemed Inability' "directors' Liability" 'statutory Construction']
['corporations Law'] ['inability to Pay Debts' 'deemed Inability' "directors' Liability" 'statutory Construction']

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Procedural Posture

Question Reserved for Consideration by Full Court / Determination of Reserved Question

Legal Issues

  1. 1 ['Whether a company may be deemed unable to pay its debts for the purpose of s.592 of the Corporations Law without unsatisfied execution as specified in s.589(4)']

Ratio Decidendi

A company cannot be regarded as unable to pay its debts for the purposes of s.592 unless execution or other process issued on a judgment in favour of a creditor has been returned unsatisfied in whole or in part, as required by s.589(4).

Court Disposition

Reserved question answered: No. Applicant to pay respondents' costs.

Orders

  • ['The reserved question is answered: No.' "Applicant to pay the respondents' costs of the question reserved."]