Hambleton (Liquidator), in the matter of China Cooking Group Aus Pty Ltd (in liq) v Zhang [2020] FCA 1879

Hambleton (Liquidator), in the matter of China Cooking Group Aus Pty Ltd (in liq) v Zhang [2020] FCA 1879

The defendant contravened s 588G of the Corporations Act 2001 (Cth) by failing to prevent the company from incurring debts while insolvent; no real issue of fact or law was disclosed for trial and summary judgment was appropriate.

Jurisdiction
Australia
Judgment Date
24 December 2020
Procedural Posture
Commercial and Corporations—corporations and Corporate Insolvency / Application for Summary Judgment; Determined on the Papers
Outcome
Application for summary judgment granted in full for the plaintiffs.
Legal Topics
['insolvent Trading' "director's Duties" 'summary Judgment' 'civil Procedure']
['corporations Law' 'insolvency' 'civil Procedure'] ['insolvent Trading' "director's Duties" 'summary Judgment' 'civil Procedure']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Commercial and Corporations—corporations and Corporate Insolvency / Application for Summary Judgment; Determined on the Papers

Legal Issues

  1. 1 ['Whether the defendant contravened s 588G of the Corporations Act 2001 (Cth) by failing to prevent the company from incurring debts when it was insolvent.' 'Whether the defendant had any reasonable prospect of successfully defending the proceeding.']

Ratio Decidendi

The defendant contravened s 588G of the Corporations Act 2001 (Cth) by failing to prevent the company from incurring debts while insolvent; no real issue of fact or law was disclosed for trial and summary judgment was appropriate.

Court Disposition

Application for summary judgment granted in full for the plaintiffs.

Orders

  • ['Declaration that the defendant contravened s 588G of the Corporations Act 2001 (Cth).' 'Judgment against the defendant in the sum of $198,249.63 (including $189,963.93 under s 588M of the Corporations Act 2001 (Cth) and $8,285.70 pre-judgment interest under s 51A of the Federal Court of Australia Act 1976 (Cth)).'...