Credit Corp Pty Ltd v Atkins [1999] FCA 335

FEDERAL COURT OF AUSTRALIA

Credit Corp Pty Ltd v Atkins [1999] FCA 335 CORPORATIONS – s 592 – directors' liability for company's debts – dates when debts were incurred – whether debts were incurred without the express or implied authority or consent of one of the directors – whether both directors did not have reasonable cause to expect that the company would not be able to pay all its debts as and when they became due

DEBTS – apportionment of payments – rule in Clayton's case Corporations Law s 592

Companies (Vic) Code s 556 Evidence Act 1995 (Cth) ss 63, 67, 128 Federal Court of Australia Act 1976 (Cth) s 51A Butterworths Australian Corporation Law – Principles and Practice Vol 2

Rejfek v McElroy (1965) 112 CLR 517 cited Hussein v Good (1990) 8 ACLC 390 cited Rema Industries v Coad (1992) 107 ALR 374 referred to Leigh-Mardon Pty Ltd v Wawn (1995) 13 ACLC 1244 cited Re Beckwith; ex parte Power and Power (a firm) (1993) 43 FCR 256 discussed Hawkins v Bank of China (1992) 26 NSWLR 562 considered Russell Halpern Nominees Pty Ltd v Martin (1987) WAR 150 considered 3M Australia v Kemish (1986) 4 ACLC 185 at 191 referred to Commonwealth Bank v Friedrich (1991) 5 ACSR 115 referred to Standard Chartered Bank of Australia Ltd v Antico (1995) 131 ALR 1 referred to Quick v Stoland Pty Ltd (1998) 157 ALR 615 referred to TCN Channel Nine v Scotney (1995) 18 ACSR 393 applied Pioneer Concrete Pty Ltd v Ellston (1985) 10 ACLR 289 followed Carrier Air Conditioning v Kurda & Ors (1993) 11 ACSR 247 cited Re Toowong Trading Pty Ltd (In liq) (1987-88) 13 ACLR 212 cited Norfolk Plumbing Supplies Pty Ltd v Commonwealth Bank of Australia (1992) 6 ACSR 601 cited Sheahan v Hertz Australia Pty Ltd (1994) 14 ACSR 209 cited Hertz Australia Pty Ltd v John Sheahan (1995) 16 ACSR 765 cited Lee Kong & Ors v Pilkington (Australia) Limited (1997) 25 ACSR 103 applied Dunn v Shapowloff (1978) 2 NSWLR 235 cited Re New World Alliance Pty Ltd (Receiver & Manager appointed) (1994) 122 ALR 531 cited Dunn v Shapowloff (1982) 148 CLR 72 cited Deveynes v Noble: Clayton's case (1816) 1 Mer 572 applied Sycotex Pty Ltd v Baseler (1994) 51 FCR 425 cited Morley v Statewide Services Ltd (1993) 1 VR 423 applied Group Four Industries Pty Ltd v Brosnan (1991) 56 SASR 234 discussed Group Four Industries Pty Ltd v Brosnan (1992) 59 SASR 22 referred to Capricorn Society Ltd v Linke (1996) 14 ACLC 431 applied Metal Manufacturers v Lewis (1986) 4 ACLC 739 cited Amatek v Botman (1995) 13 ACLC 1729 referred to Metal Manufacturers Ltd v Lewis (1988) 13 NSWLR 315 cited