Incentive Dynamics Pty Ltd (in liq) v Robins [1999] FCA 808

FEDERAL COURT OF AUSTRALIA

Incentive Dynamics Pty Ltd (in liq) v Robins [1999] FCA 808 CORPORATIONS – liquidation – advances of monies to related entities – whether directors and officers liable for debts not recoverable. CORPORATIONS – liquidation – advances of monies to related entities – purpose of advance to assist in purchasing property – debt not recoverable – whether held as constructive trustee for lender. Corporations Law ss 60(1), 60(2), 82A(1), 232(1), 232(2), 232(4), 232(6), 588FA, 588FC, 588FE and 598 McKenzie v McKenzie [1971] P 33 considered Barnes v Addy [1874] LR 9 Ch App 244 distinguished Farrow Finance Co Ltd (In Liqu) v Farrow Properties Pty Ltd (In Liqu) (1997) 26 ACSR 544 distinguished Browne v Dunn [1894] 6 R 67 applied Re Diplock [1947] Ch 716 considered Black v Freedman (1910) 12 CLR 105 considered Deputy Commissioner of Taxation v Austin (1998) 28 ACSR 565 applied Mills v Mills (1938) 60 CLR 150 considered Walker v Wimborne (1976) 137 CLR 1 considered Equiticorp Finance Ltd (In Liq) v Bank of New Zealand (1993) 32 NSWLR 50 considered

INCENTIVE DYNAMICS PTY LIMITED (In Liquidation) (ACN 003 294 700) & ROBERT WILLIAM MORTON (In his capacity as Official Liquidator of Incentive Dynamics Pty Limited) v DOUGLAS ROBERT McNEILL ROBINS, JOHN HAIGH ROBINS, JONATHAN MICHAEL MEISSNER, JOHN D'ERSBY HUDSON, COLDWICK PTY LTD (ACN 053 573 395), ROBINS HAIGH McNEILL PTY LIMITED (ACN 002 876 771), PAGBY PTY LIMITED (ACN 005 203 136) & CHERYL ANN CHANG NG 3043 OF 1997 MANSFIELD J ADELAIDE (Heard in Melbourne) 16 JUNE 1999

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 3043 OF 1997

BETWEEN: INCENTIVE DYNAMICS PTY LIMITED (In Liquidation) (ACN 003 294 700)

First Applicant

ROBERT WILLIAM MORTON (In his capacity as