Australian Securities and Investments Commission v McDermott, in the matter of Conalpin Pty Ltd (in liq) [2016] FCA 1186

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v McDermott, in the matter of Conalpin Pty Ltd (in liq) [2016] FCA 1186 File number: VID 926 of 2015

Judge: MOSHINSKY J

Date of judgment: 4 October 2016

Catchwords: CORPORATIONS – liquidators – duties – Court inquiry into defendant's conduct as a liquidator and administrator – whether defendant failed to act independently, free of actual, apparent or potential conflicts of interests – whether defendant acted with the appropriate degree of care and diligence – whether defendant failed to properly inform creditors of the basis for remuneration and drew down remuneration without properly informed creditor approval or Court approval – agreement between the parties to settle the matter – whether consent orders should be made

Legislation: Corporations Act 2001 (Cth), ss 180, 439A, 447A, 447E, 449B, 449D, 473, 502, 503, 509, 536, 1282, 1283, 1292

Cases cited: Australasian Memory Pty Limited v Brien (2000) 200 CLR 270 Australian Securities and Investments Commission v Dunner (2013) 303 ALR 98 Australian Securities and Investments Commission v Edge (2007) 211 FLR 137 Australian Securities and Investments Commission v Newcrest Mining Ltd (2014) 101 ACSR 46 Australian Securities and Investments Commission, in the matter of Padbury Mining Limited v Padbury Mining Limited [2016] FCA 990 Barbaro v The Queen (2014) 253 CLR 58 Commissioner for Corporate Affairs v Harvey [1980] VR 669 Commonwealth v Director, Fair Work Building Industry Inspectorate (2015) 326 ALR 476 Free & Ors [2010] NSWSC 1079 Gibbons v LibertyOne (2002) 167 FLR 310 Hall v Poolman (2009) 75 NSWLR 99 Hausmann v Smith (2006) 24 ACLC 688 In re Home & Colonial Insurance Company, Limited [1930] 1 Ch 102 at 125 In re Windsor Steam Coal Company (1901), Limited [1929] 1 Ch 151 In the matter of MKC Media Corporation Pty Limited (in liq) [2016] NSWSC 690 Pace v Antlers Pty Ltd (in liq) (1998) 80 FCR 485 Re Application of Vouris (2004) 49 ACSR 543 Re Contract Corporation (Gooch's Case) (1871) LR 7 Ch App 207 Re Monarch Gold Mining Co Ltd; Ex parte Hughes [2008] WASC 201 Re Young and Companies Auditors and Liquidators Disciplinary Board (2000) 34 ACSR 425