Re Morrison, P. & Anor v. Shoreline Currencies (Australia) Pty Ltd [1987] FCA 469

LIMITED DISTRIBUTION JUDCMENT No. 464

IN THE FEDERAL COURT OF AUSTRALIA

GENERAL DIVISION BANKRUPTCY DISTRICT OF THE STATE OF No. P285 of 1986

NEW SOUTH WALES AND

wwe eww we SS DS

THE AUSTRALIAN CAPITAL TERRITORY

RE: PHILLIP MORRISON and ELIZABETH MAY MORRISON

Talso known as

PHILLIP JAMES and ELIZABETH JAMES)

Debtors

EX PARTE: SHORELINE CURRENCIES (AUSTRALIA) PTY LIMITED

(In Liquidation)

Petitioning Creditor

CORAM: Burchett J. DATE: 21 August 1987 PLACE: Sydney

REASONS FOR JUDGMENT

The male debtor, who was the chairman of directors of the petitioning creditor, and the female debtor, his wife, who

was also a director of the company, left Australia by air on

FODESAL COURT AUSTRALIA OF

purpose of a holiday for a period of 30 days, intending that the country in which they would spend the most time abroad would be the United Kingdom. The central issue in the petition is whether, as the petitioning creditor alleges, they then departed and have since remained out of Australia with

intent to defeat or delay their creditors. ($.40(1)(c)(1) of

the Bankruptcy Act 1966).

A little over a month after their departure, the debtors, as directors of the company, held a directors' meeting at an address in London. The exact date of the meeting does not appear in the minutes which bear the signature of the male debtor as chairman, but it seems to have been held about 5th September 1986. At that meeting the debtors, who were the only directors present, resolved "that in their opinion the company was insolvent and unable to pay its debts." They proceeded to resolve further that applications should be made to the Supreme Court of New South Wales for the winding up of the company and that applications should be made forthwith for the appointment of a provisional

liquidator pending the hearing of the winding up application.