Molit (No 55) Pty Ltd v Lam Soon Australia Pty Ltd [1997] FCA 395

CATCHWORDS CORPORATIONS - whether appropriate in circumstances for the court to exercise its discretion under s445D(1) to terminate deed of company arrangement - whether material omission in s439A(4) administrator's report of information required by Corporations Regulation 5.3A.02 regarding possible recoveries from voidable transactions - whether omission was material to creditors when voting in favour of resolution to execute the deed of company arrangement. CORPORATIONS - whether appropriate in circumstances for the court to exercise its discretion under s445D(1) to terminate deed of company arrangement - whether administrator in preparing s439A(4) report gave proper consideration to claims which might be made against directors and holding company - likelihood of claims being made out under s588G or s588V - whether company was insolvent at relevant time - whether loss likely to be established "because of the company's insolvency". CORPORATIONS - whether appropriate in circumstances for the court to exercise its discretion under s445D(1) to terminate deed of company arrangement - whether administrator's statement in s439A(4) report regarding proposed valuation of property as a going concern was material to creditors in deciding to vote in favour of executing deed of company arrangement - whether independent valuation was false or misleading. Corporations Law, ss 85A, 95A(1), 439A, s445D(1), 588G, 588J, 588K, 588M, 588V, 588W Corporations Regulations, r5.3A.02 MOLIT (NO. 55) PTY LTD v LAM SOON AUSTRALIA PTY LTD (ADMINISTRATOR APPOINTED) No. SG 3037 of 1995 CORAM: BRANSON J PLACE: ADELAIDE DATE: 6 MAY 1997

IN THE FEDERAL COURT OF AUSTRALIA) SOUTH AUSTRALIA DISTRICT REGISTRY) No. SG 3037 of 1995 GENERAL DIVISION ) BETWEEN: MOLIT (NO. 55) PTY LTD ACN 008 214 739 Applicant AND: LAM SOON AUSTRALIA PTY LTD (ADMINISTRATOR APPOINTED) ACN 008 273 694 Respondent CORAM: BRANSON J PLACE: ADELAIDE DATE: 6 MAY 1997