In the matter of Pasminco Limited (Administrators Appointed) [2002] FCA 231

FEDERAL COURT OF AUSTRALIA

In the matter of Pasminco Limited (Administrators Appointed) [2002] FCA 231 CORPORATIONS LAW – external administration – application for directions pursuant to s 447D of the Corporations Act 2001 (Cth) – whether liabilities of companies for employees' legal costs and expenses of claims for compensation for injuries sustained in employment attract priority for payment under s 556(1) of the Corporations Act 2001 (Cth) – where orders made and settlement agreements reached under which companies liable for legal costs incurred by employees in respect of injury compensation claims against companies – injuries incurred prior to administration – distinction between orders made and agreements entered into before and after commencement of administration – whether payments of legal costs and expenses pursuant to orders made and agreements entered into prior to commencement of administration are amounts due in respect of injury compensation under s 556(1)(f) of the Corporations Act 2001 (Cth) – whether payments of legal costs and expenses pursuant to orders made and agreements entered into after commencement of administration are expenses incurred in preserving property of company under s 556(1)(a) or s 556(1)(dd) of the Corporations Act 2001 (Cth).

Corporations Act 2001 (Cth): Pt 5.3A, ss 443A, 443D, 447D, 556(1), 563(1) State Government Insurance Office v Rees (1979) 144 CLR 549 considered Construction Industry Long Service Leave Board v Irving (1997) 74 FCR 587 applied Re Wenborn & Co [1905] 1 Ch 413 considered Brash Holdings Ltd (Administrator appointed) v Katile Pty Ltd [1996] 1 VR 24 considered Daydream Island International Resort Pty Ltd v Cushway Blackford & Associates (Aust) Pty Ltd (1995) 13 ACLC 82 considered Federal Commissioner of Taxation v Gosstray [1986] VR 876 referred to Re SBA Properties Ltd [1967] 1 WLR 799 considered Sandtara Pty Ltd v Abigroup Ltd (No 2) (1995) 16 ACSR 494 referred to