McGrath & Ors as Liquidators of HIH Insurance Ltd [2009] NSWSC 1244

Approval is granted under s 477(2B) of the Corporations Act 2001 (Cth) because the making of the tax sharing agreement is expedient for the winding up, limits risk to each company's creditors, is supported by professional advice, and no legal or prudential impediment is apparent.

Jurisdiction: Australia
Judgment Date: 18 November 2009
Procedural Posture: Application for Approval by Liquidators Under Corporations Act / Judgment on Application
Outcome: Approval granted under s 477(2B) of the Corporations Act 2001 (Cth).
Legal Topics: ['winding Up' "liquidator's Powers" 'tax Sharing Agreement' 'consolidated Tax Group' 'approval of Agreements Under S 477(2 B)']

['corporations Law' 'insolvency' 'taxation Law'] ['winding Up' "liquidator's Powers" 'tax Sharing Agreement' 'consolidated Tax Group' 'approval of Agreements Under S 477(2 B)']

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Procedural Posture

Application for Approval by Liquidators Under Corporations Act / Judgment on Application

Legal Issues

1 ['Whether the court should approve the making of a tax sharing agreement among companies in liquidation under s 477(2B) of the Corporations Act 2001 (Cth)' 'What constitutes a reasonable allocation for the purposes of a tax sharing agreement limiting group tax liability exposure']

Ratio Decidendi

Court Disposition

Approval granted under s 477(2B) of the Corporations Act 2001 (Cth).

Orders

['Orders made under s 477(2B) approving the entry into the tax sharing agreement, amended to correct minor drafting anomaly.']