Smith as Judicial Manager of Australian Family Assurance Limited v Australian Family Assurance Limited [2009] FCA 1449

FEDERAL COURT OF AUSTRALIA

Smith as Judicial Manager of Australian Family Assurance Limited v Australian Family Assurance Limited [2009] FCA 1449

INSURANCE – application for order giving effect to a course of action recommended by judicial manger in report under s 62ZI of Insurance Act 1973 (Cth) – recommendation that general insurer be wound up – order made under s 62ZJ(1)(b) of Act giving effect to recommendation because it was course of action Court considered most advantageous to general interest of policyholders, while promoting financial system stability in Australia. Corporations Act 2001 (Cth) s 461(1) Insurance Act 1973 (Cth) ss 62S, 62ZI, 62ZJ MURRAY SMITH AS JUDICIAL MANAGER OF AUSTRALIAN FAMILY ASSURANCE LIMITED (JUDICIAL MANAGER APPOINTED) (ACN 003 044 862) v AUSTRALIAN FAMILY ASSURANCE LIMITED (JUDICIAL MANAGER APPOINTED) (ACN 003 044 862) and AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

NSD 1173 of 2009

LINDGREN J

4 DECEMBER 2009

SYDNEY IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 1173 of 2009

GENERAL DIVISION

BETWEEN: MURRAY SMITH AS JUDICIAL MANAGER OF AUSTRALIAN FAMILY ASSURANCE LIMITED

(JUDICIAL MANAGER APPOINTED) (ACN 003 044 863)

Applicant

AND: AUSTRALIAN FAMILY ASSURANCE LIMITED

(JUDICIAL MANAGER APPOINTED) (ACN 003 044 862)

First Respondent

AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Second Respondent

JUDGE: LINDGREN J

DATE OF ORDER: 30 october 2009

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The Australian Prudential Regulation Authority be joined as second respondent to this proceeding;

2. Pursuant to section 62ZJ of the Insurance Act 1973 (Cth) (Insurance Act), the first respondent be wound up as if under s 461(1) of the Corporations Act 2001 (Cth);