City & Suburban Pty Ltd & Ors v Smith, Michael John Morris, Liquidator of Conpac (Aust) Pty Ltd (in liq) & Anor [1998] FCA 822

FEDERAL COURT OF AUSTRALIA CORPORATIONS LAW - liquidation - application by creditors to remove liquidator - prima facie evidence of breach of duty by liquidator - Whether sufficient cause to remove liquidator - tests of when Court may be satisfied of sufficient cause – whether liquidator should be afforded opportunity to resign - liquidator's application for remuneration - reduction of remuneration in respect of liquidator's failure to investigate properly certain matters.

Corporations Law ss 503, 548

Re Adam Eyton Ltd; Ex parte Charlesworth (1887) 36 Ch D 299 applied Re The Mutual Live Stock Financial and Agency Company Limited (1886) 12 VLR 777 cited Re George A. Bond and Company Ltd (1932) 32 SR NSW 301 applied Re Giant Resources Limited [1991] 1 Qd R 107 cited Network Exchange Pty Ltd v MIG International CommunicationsPty Ltd (1994) 13 ACSR 544 cited Re Biposo Pty Ltd (1995) 17 ACSR 730 considered Dallinger v Halcha Holdings Pty Ltd (1995) 134 ALR 178 cited Re National Safety Council of Australia, Victorian Division [1990] VR 29 applied Adsett v Berlouis (1992) 37 FCR 201 cited Tracker Software v Smith (1997) 24 ACSR 644 cited Law of Company Liquidation (B H McPherson, 3rd ed by J O'Donovan, 1987)

CITY & SUBURBAN PTY LTD & others v michael john morris smith LIQUIDATOR of conpac (aust) pty limited (in liquidation) & another NG 3027 1998 NG 3065 of 1998

MERKEL j

9 July 1998

cANBERRA (HEARD IN sydney)

IN THE FEDERAL COURT OF AUSTRALIA

SYDNEY DISTRICT REGISTRY ng 3027 OF 1998

ng 3065 OF 1998

BETWEEN: CITY & SUBURBAN PTY LTD and others

applicants AND: michael john morris smith LIQUIDATOR of conpac (aust) pty limited (in liquidation) and another

RespondentS

and in the matter of: conpac (aust) pty limited (in liquidation)