McLellan, in the matter of The Stake Man Pty Ltd v Carroll [2009] FCA 1415

FEDERAL COURT OF AUSTRALIA

McLellan, in the matter of The Stake Man Pty Ltd v Carroll [2009] FCA 1415

BANKRUPTCY AND INSOLVENCY – whether debts incurred in relevant period – whether company insolvent at time debts incurred or became insolvent by incurring debts – whether director aware of grounds for suspecting insolvency – whether reasonable grounds to suspect insolvency – whether a reasonable person in the position of director of a company in the circumstances would have been aware of insolvency – failure of director to prevent company incurring debts – creditors suffered loss and damage – whether reasonable grounds to expect solvency – whether reasonable grounds to believe a competent and reliable person was responsible for providing adequate information about company's solvency – whether director ought fairly to be excused for contravention

CORPORATIONS – trading while insolvent – whether director aware of grounds for suspecting insolvency – whether reasonable grounds to suspect insolvency – whether a reasonable person in the position of director of a company in the circumstances would have been aware of insolvency – failure of director to prevent company incurring debts – creditors suffered loss and damage – whether reasonable grounds to expect solvency – whether reasonable grounds to believe a competent and reliable person was responsible for providing adequate information about company's solvency – whether director ought fairly to be excused for contravention Corporations Act 2001 (Cth): ss 446A, 439C(c), 588G, 588H(1) 588H(2), 588H(3), 588M(2), 1317S, 1317S(2) and 1318 Bankruptcy Act 1966 (Cth): s 95 Payroll Tax Act 1971 (Vic)

Australian Securities and Investments Commission v Plymin (2003) 46 ACSR 126, followed 3M Australia Pty Ltd v Kemish (1986) 10 ACLR 371, followed Sandell v Porter (1966) 115 CLR 666, followed Re United Medical Protection Ltd (prov liq appt) (2003) 47 ACSR 705, followed Hall v Poolman (2007) 65 ACSR 123, followed Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation (2001) 188 ALR 114, followed Lewis v Doran (2004) 50 ACSR 175, followed Powell v Fryer (2001) 159 FLR 433, followed Tourprint International Pty Ltd v Bott (1999) 32 ACSR 201, followed Manpac Industries Pty Ltd v Ceccattini [2002] NSWSC 330, cited