Playspace Playground Pty Ltd v Osborn [2009] FCA 1486

FEDERAL COURT OF AUSTRALIA

Playspace Playground Pty Ltd v Osborn [2009] FCA 1486 CORPORATIONS LAW – Insolvency – insolvent trading – consideration of what is meant by incurring a debt for the purposes of s 588G of the Corporations Act 2001 (Cth) – to be determined according to commercial reality – whether goods are manufactured to order or whether goods are readily resalable if delivery is refused or order cancelled CORPORATIONS LAW – Insolvency – insolvent trading – consideration of what is meant by insolvency – "cash flow test" – consideration of the financial position of the company in its entirety – checklist of indicators of insolvency CORPORATIONS LAW – Insolvency – insolvent trading – onus of proof of insolvency – contravention of s 588G – requirement to meet Briginshaw approach

Corporations Act 2001 (Cth), ss 588G, 588G(2), 588G(3), 588H, 588M, 588M(3)

Hawkins v Bank of China (1992) 26 NSWLR 562 Woodgate v Davis (2002) 55 NSWLR 222 Standard Chartered Bank of Australia Ltd v Antico (1995) 38 NSWLR 290 Leigh-Mardon Pty Ltd v Wawn (1995) 17 ACSR 741 Hussein v Good (1990) 1 ACSR 710 Rema Industries and Services Pty Ltd v Coad (1992) 107 ALR 374 Taylor v Powell (1993) 113 ALR 374 Australian Securities and Investments Commission v Plymin (2003) 175 FLR 124 Lewis (as liq of Doran Constructions Pty Ltd (in liq) v Doran (2005) 54 ACSR 410 Re Damilock Pty Ltd (In Liq); Lewis and Carter as Liquidators of Damilock Pty Ltd (In Liq) v VI SA Australia Pty Ltd (2009) 252 ALR 533 Sandell v Porter (1966) 115 CLR 666 Southern Cross Interiors Pty Ltd v Deputy Commissioner of Taxation (2001) 53 NSWLR 213 Quick v Stoland Pty Ltd (1998) 29 ACSR 130 Emanuel Management Pty Ltd (in liq) v Foster's Brewing Group Ltd (2003) 178 FLR 1 TCN Channel Nine Pty Ltd v Scotney (1995) 17 ACSR 116 Commonwealth Bank of Australia v Friedrich (1991) 5 ACSR 115 Briginshaw v Briginshaw (1938) 60 CLR 336