Trans Pacific Investment Corporation Pty Ltd v Rusty Rees Pty Ltd & Ors [1995] FCA 288

CATCHWORDS CORPORATIONS LAW - offences - by individuals connected with the company - company incurring debt when reasonable to expect inability to pay - deemed inability to pay - whether exclusive means of proof of inability to pay - Corporations Law s589(4), s592. Corporations Law ss 589, 592 Butler Rains Menzies & Co. (a firm) v. Devine [1994] 1 Qd.R. 1 Macquarie Bank Ltd v. Fociri Pty Ltd (1992) 27 NSWLR 203 Cooper & Dysart Pty Ltd v. Sargon (1991) 5 WAR 472 TRANS PACIFIC INVESTMENT CORPORATION PTY LTD V. RUSTY REES PTY LTD AND OTHERS PAN AQUATIC RESOURCES PTY LTD V. RUSTY REES PTY LTD AND OTHERS No. QG71 of 1992 No. QG72 of 1992 Black CJ, Davies and Beaumont JJ. 28 April 1995 Brisbane

IN THE FEDERAL COURT OF AUSTRALIA ) No. G71 of 1992 QUEENSLAND DISTRICT REGISTRY ) GENERAL DIVISION ) QUESTION RESERVED FOR THE CONSIDERATION OF THE FULL FEDERAL COURT BY A JUDGE OF THE COURT BETWEEN: TRANS PACIFIC INVESTMENT CORPORATION PTY LTD Applicant AND: RUSTY REES PTY LTD First respondent EMRYS REES Second respondent EMRYS REES (as executor of the estate of DOROTHY BERYL REES) Third respondent WAYNE REES Fourth respondent CORAM: BLACK CJ, DAVIES AND BEAUMONT JJ. DATE: 28 APRIL 1995 PLACE: BRISBANE MINUTES OF ORDER The Court orders that: 1. The question reserved for consideration of the Full Court namely; "Whether the first respondent may be a company to which s.592 of the Corporations Law applies, by reason of the fact that it is unable to pay its debts, notwithstanding that execution or other process issued on a judgment, decree or order of any Court in favour of a creditor of the first respondent had not been returned unsatisfied in whole or in part ?" be answered: No. 2. The applicant pay the respondents' costs of the question reserved. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court rules.