Sipad Holding ddpo & Anor v Popovic, Nikola & Ors [1995] FCA 1141

CATCHWORDS Corporations Law - Receivers and managers - effect of appointment by the Court on contracts of employment between a company and its employees - whether receiver acts as agent or principal of the company - receiver appointed to maintain status quo during dispute as to ownership of shares rather than due to impending insolvency - effect thereof upon liability of the receiver - clear contemplation that receiver would be withdrawn and the directors would continue to control the company - contracts of employment remained on foot - whether receiver personally liable for certain employment-related claims of employees - whether s 419 of the Corporations Law can apply to impose a personal liability on the receiver in the circumstances - whether any personal liability imposed on the receiver in the circumstances by s 433 of the Corporations Law - whether giving receiver notice of an employee's claim against the company can have the effect of making the receiver personally liable to meet that claim. Corporations Law s 419, s 433 Reid v Explosives Company (1887) 19 QBD 264 considered Nichol v Cutts [1985] BCLC 322 considered Parsons v Sovereign Bank of Canada [1913] AC 160 considered International Harvester Export Co. v International Harvester Australia Ltd [1983] 1 VR 539 applied Associated Newspapers Ltd v Grinston (1949) 66 WN (NSW) 211 applied British Investments and Development Company Pty Ltd [1979] ACLC 32100 applied Woods v Winskill (1913) 2 Ch 303 considered Inland Revenue Commissioners v Goldblatt [1972] 2 AllER 202 considered Re: Tarjan Construction Co Pty Ltd [1964] NSWR 1054 considered SIPAD HOLDING d.d.p.o. & Anor. v NIKOLA POPOVIC & ORS. No. NG 3192 of 1995 CORAM: Lehane J PLACE: Sydney DATE: 12 December 1995

IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY ) No. NG3192 of 1995 GENERAL DIVISION ) IN THE MATTER OF SIDEX AUSTRALIA PTY LIMITED (A.C.N. 000 828 606) BETWEEN: SIPAD HOLDING d.d.p.o. First Applicant PERO VLADIC Second Applicant AND: NIKOLA POPOVIC First Respondent DRAGAN KARAC Second Respondent MILAN JOVICIC Third Respondent JOSEPH JOHN GILLES Fourth Respondent AUSTRALIA FURNITURE PTY LIMITED Fifth Respondent SIDEX AUSTRALIA PTY LIMITED Sixth Respondent SIPAD EXPORT IMPORT d.d.p.o. Seventh Respondent CORAM: Lehane J PLACE: Sydney DATE: 12 December 1995 MINUTE OF ORDERS THE COURT DECLARES: 1. THAT the receiver has no personal liability for statutory and other employment-related entitlements claimed by the first, second and third respondents for accrued long service leave untaken, annual leave, redundancy and other employment related matters.