Sands Contracting Pty Ltd v Foodcorp (VIC) Pty Ltd [2020] FCA 1274

FEDERAL COURT OF AUSTRALIA

Sands Contracting Pty Ltd v Foodcorp (VIC) Pty Ltd [2020] FCA 1274 File number: WAD 9 of 2020

Judgment of: MCKERRACHER J

Date of judgment: 4 September 2020

Catchwords: CORPORATIONS – liquidators – application for removal of – whether liquidator acted impartially and independently – where plaintiffs are the only major creditor – where plaintiffs' claim is the subject of litigation – where liquidator valued the claim at one dollar for voting purposes – where liquidator admitted debts of the other two creditors before being provided with invoices – where plaintiffs were opposed to the Deed of Company Arrangement (DOCA) – where DOCA was approved on the votes of the other two creditors – consideration of principles on the removal of liquidator CORPORATIONS – external administration – liquidation – whether company has passed into liquidation or remains in administration – where DOCA approved at creditors meeting – where DOCA is not prepared or executed because application is brought to remove liquidator – where company is deemed to pass into liquidation if DOCA is not executed within 15 days of being prepared – where ASIC Register shows the company to be in liquidation – where no application was made to amend the ASIC Register

Legislation: Corporations Act 2001 (Cth) ss 435C(2), 437A, 437B, 437D, 439C, 444A, 444A(1), 444A(3), 444B, 444B(1), 444B(2), 444B(7), 446A, 446A(1)(b), 446A(2)(a), 446A(5)(a), 446A(5)(b), 447A, 450C, 482, 556, Pts 5.3A, 5.6, Sch 2 r 70-45, 90-15 Corporations Regulations 2001 (Cth) regs 5.6.12-5.6.36A (repealed) Insolvency Practice Rules (Corporations) 2016 (Cth) rr 70-15, 70-15(2)(a), 70-15(2)(c), 70-15(2)(e), 70-15(2)(f), 75-85(1), 75-85(2), 75-85(3), 75-85(4), 75-95, 75 100(1), 75-100(2), Divs 70, 75