6 Dec 2018
The Supreme Court granted leave to appeal and approved a focused question for determination: whether the payments totalling $262,758.05 were insolvent transactions within s292 of the Companies Act 1993 and whether an additional requirement that such transactions diminish assets available to creditors or disadvantage the general body of creditors is necessary to satisfy s292.
9 Nov 2009
The liquidator failed to establish that the challenged payments constituted preferential transactions under s 292. The court found the payments to third parties were advances by the company (not payments to the respondent) or could be explained as repayments of third‑party advances to the company with mistaken ledger treatment. Consequently the respondent did not receive more towards satisfaction of a debt than she would have in liquidation and s 292 was not engaged; the application to set aside was dismissed.
22 Oct 2008
On the objective assessment of the parties' commercial relationship and industry practice, the history of invoices and payments, the pattern of late and rounded payments, absence of evidence of notice of insolvency or special credit concern, and the continued contractual relationship, the respondents proved on the balance of probabilities that the impugned payments were made in the ordinary course of business and therefore were not voidable under s292 of the Companies Act 1993.
4 Jun 2008
The payment of $70,000 was made by ASL from joint venture proceeds while ASL was insolvent and within the restricted period, it was not in the ordinary course of business given the winding down of the venture and it conferred on AIL more than it would have received in liquidation, therefore the payment was voidable under s292 and recovery is appropriate; the appeal is dismissed.