In the matter of All States Hire Pty Limited [2019] NSWSC 1897

In the matter of All States Hire Pty Limited [2019] NSWSC 1897

The appointment of the liquidators should be validated under s 1322(4) of the Corporations Act 2001 (Cth) because, notwithstanding procedural irregularities and the ineligibility of the purported appointor, it is just and equitable that independent liquidators remain in office, and no substantial injustice results.

Parties
First Plaintiff: Shumit Banerjee and Jason Porter in their capacity as joint and several liquidators of All States Hire Pty Limited (in liq) and Splendid Capital Investments Pty Limited (in liq); Second Plaintiff: Mohamad El Jarrar; Third Plaintiff: IMS (Aust) Pty Ltd; First Defendant: All States Hire Pty Limited (in liq); Second Defendant: Splendid Capital Investments Pty Limited (in liq)
Jurisdiction
Australia
Judgment Date
27 November 2019
Procedural Posture
Equity Corporations List / Application to Validate Appointment of Liquidators
Outcome
Orders made validating appointment of liquidators under s 1322(4) of the Corporations Act 2001 (Cth); no order as to costs.
Legal Topics
Winding Up, Validation of Appointment, Liquidators, Share Transfer, Director Disqualification
Corporations Winding Up Validation of Appointment Liquidators Share Transfer Director Disqualification

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Parties

Shumit Banerjee and Jason Porter in their capacity as joint and several liquidators of All States Hire Pty Limited (in liq) and Splendid Capital Investments Pty Limited (in liq)

First Plaintiff

Mohamad El Jarrar

Second Plaintiff

IMS (Aust) Pty Ltd

Third Plaintiff

All States Hire Pty Limited (in liq)

First Defendant

Splendid Capital Investments Pty Limited (in liq)

Second Defendant

Procedural Posture

Equity Corporations List / Application to Validate Appointment of Liquidators

Legal Issues

  1. 1 Whether the appointment of liquidators by a purported sole director/shareholder, who was an undischarged bankrupt and likely not validly appointed, should be validated under s 1322(4) of the Corporations Act 2001 (Cth)

Ratio Decidendi

The appointment of the liquidators should be validated under s 1322(4) of the Corporations Act 2001 (Cth) because, notwithstanding procedural irregularities and the ineligibility of the purported appointor, it is just and equitable that independent liquidators remain in office, and no substantial injustice results.

Court Disposition

Orders made validating appointment of liquidators under s 1322(4) of the Corporations Act 2001 (Cth); no order as to costs.

Orders

  • Orders made under s 1322(4) of the Corporations Act 2001 (Cth) in respect of each company validating the appointment of the liquidators.
  • No order as to costs.