Re: Brown, Martin Russell [1995] FCA 1153

ywoament No. L227 12.

IN THE FEDERAL COURT OF AUSTRALIA )

NEW SOUTH WALES DISTRICT REGISTRY ) No. NG 3503 of 1995 GENERAL DIVISION ) Re: MARTIN RUSSELL BROWN

First Applicant

And: BARRY RAYMOND COOK Second Applicant

And: F.F.C. REALISATIONS PTY LTD

{formerly __ Favelle__Fayco Cranes Pty Ltd) (receiver and manager appointed) (subject to Deed ° Compan Arrangement) ACN 003 689 478

Third Applicant

REASONS FOR JUDGMENT EINFELD J SYDNEY 24 OCTOBER 1995

The joint administrators of FFC Realisations Pty Limited apply this afternoon at short notice for an order directing that a meeting of creditors of the company fixed for tomorrow morning at 9.30am be postponed to a later date. The grounds upon which they move are that since the notice of meeting which was settled by or received the approval of the Court some weeks ago, one of the creditors, Southern Steel Group Pty Limited, has circulated creditors with misleading and deceptive information and has sought and received proxies to vote in accordance with the positions it proposes to advocate at the meeting. The adoption of these proxies by the meeting would result in maintaining as

the status quo a deed of company arrangement both in relation to

-2- the proposed dividend to be paid to creditors and the

administration of the company for that purpose, amongst others.

Only one creditor has attended this hearing today because the proceedings were brought on at short notice on the basis that the allegedly misleading circular only came to the notice of the administrators today. That creditor was Southern Steel, the author of the allegedly offending document. Southern Steel does not oppose, and in fact supports, the application for an adjournment of the meeting whilst denying that the circular is misleading in any respect. This rather odd position was not explained by the company's counsel except to say that the present dispute ought to be resolved by the Court before the meeting takes place. The purposes of the meeting included the view or request of Justice Foster, who had settled or approved the explanation to creditors, that a meeting be held to obtain the view of the creditors on the confirmation of the first applicant as a joint administrator. Obviously if the meeting is postponed