FEDERAL COURT OF AUSTRALIA Chamberlain, in the matter of Vanity Constructions Pty Limited (Administrator Appointed) ACN 100 877 110 [2007] FCA 75 CHRISTOPHER MEL CHAMBERLAIN, IN THE MATTER OF VANITY CONSTRUCTIONS PTY LIMITED (ADMINISTRATOR APPOINTED) ACN 100 877 110 NSD128 OF 2007 EMMETT J 2 FEBRUARY 2007 SYDNEY IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY NSD128 OF 2007 IN THE MATTER OF VANITY CONSTRUCTIONS PTY LIMITED (ADMINISTRATOR APPOINTED) ACN 100 877 110 CHRISTOPHER MEL CHAMBERLAIN Plaintiff JUDGE: EMMETT J DATE OF ORDER: 2 FEBRUARY 2007 WHERE MADE: SYDNEY THE COURT ORDERS THAT: 1. This application be dealt with instanter. 2. The convening period for the holding of a meeting of creditors of Vanity Constructions Pty Limited (administrator appointed) be extended for a period of 14 days. 3. This order be entered forthwith. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY NSD128 OF 2007 IN THE MATTER OF VANITY CONSTRUCTIONS PTY LIMITED (ADMINISTRATOR APPOINTED) ACN 100 877 110 CHRISTOPHER MEL CHAMBERLAIN Plaintiff JUDGE: EMMETT J DATE: 2 FEBRUARY 2007 PLACE: SYDNEY REASONS FOR JUDGMENT 1 The plaintiff in this proceeding was appointed administrator of Vanity Constructions Pty Limited ('the Company') on 15 January 2007. The appointment was made pursuant to the Corporations Act 2001 (Cth) ('the Act'). In accordance with the provisions of the Act, the first meeting of creditors of the Company was held on 22 January 2007. The plaintiff's appointment as administrator was confirmed and a committee of creditors was formed. 2 Under s 439A(1) of the Act, the plaintiff is bound to convene a second meeting of the creditors of the Company within the convening period, as defined by s 439A(5). That meeting must be held within five business days after the end of the convening period. The effect of the provisions is that the meeting must be convened by 5 February 2007 and must be held by 9 February 2007. However, under s 439A(6), the Court may extend the convening period on an application made within that period. The plaintiff now applies for an extension of time within which to convene the meeting. The extension asked for is 14 days. 3 The Company carries on its business in Queensland and the Gold Coast. Its business is the construction of residential dwellings. The Company has granted charges over its assets. The creditors that are the beneficiaries of those charges have been notified of this application and have not communicated any objection to the plaintiff. The committee of creditors is also aware of the application and consents to the proposed extension. 4 The plaintiff has said that his administration has been hampered to a degree by two matters. The first is the intervention of the public holiday on 26 January 2007. The second is that he is located in New South Wales, whereas the business and books of the Company are in Queensland. At the date of the applicant's appointment, the Company had approximately 15 homes under construction, all at various stages of completion. It had six full-time employees and numerous contractual arrangements with various entities, all of which require consideration by the applicant. There are numerous agreements in place between the Company and associated entities, which the plaintiff considers warrant further investigation. The Company has ceased to trade. 5 A meeting of the committee of creditors has asked the plaintiff to consider the validity of a charge, given by the Company in favour of a related party approximately seven months prior to the applicant's appointment, and to investigate the flow of funds between those companies. The plaintiff does not consider that he would be in a position to complete investigations or to comment accurately on the results of any investigations within the time that is required by the Act. 6 In all of the circumstances, I consider that it is appropriate to accede to the plaintiff's application. I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Emmett. Associate: Dated: 7 February 2007 Solicitor for the Plaintiff: KP Farmer & Associates Date of Hearing: 2 February 2007 Date of Judgment: 2 February 2007