Mansfield v Thousand Angeles Island Pty Ltd (in liq), in the matter of Thousand Angeles Island Pty Ltd (in liq) (No 2) [2021] FCA 283

FEDERAL COURT OF AUSTRALIA

Mansfield v Thousand Angeles Island Pty Ltd (in liq), in the matter of Thousand Angeles Island Pty Ltd (in liq) (No 2) [2021] FCA 283 File number(s): NSD 18 of 2019

Judgment of: FARRELL J

Date of judgment: 25 March 2021

Catchwords: BANKRUPTCY AND INSOLVENCY – application by trustee of bankrupt estate and liquidator of company – where trustee is sole shareholder of company – where liquidator of the company is same person as trustee – where company appears to have been used as a vehicle to distance bankrupt from ownership of shares in a second company which were acquired by and transferred by the company for no consideration – where company has no assets or debts other than claims of bankrupt estate in relation to the transfer of shares in the second company – where trustee and liquidator seek directions that he is justified in entering Deed of Settlement and Release with current owner of shares in the second company and performing obligations under it – where liquidator seeks approval to compromise his claim against the current owner of the shares in the second company under s 477(2A) of the Corporations Act 2001 (Cth) – applications granted BANKRUPTCY AND INSOLVENCY – application by liquidator of company – where the same person is trustee of the bankrupt estate which is the sole shareholder and liquidator of the company – where liquidator seeks approval of past and future remuneration – where creditors of bankrupt estate not notified of hearing – application granted with leave for creditors of bankrupt estate to apply to revoke or vary orders

Legislation: Bankruptcy Act 1966 (Cth) s 30 Bankruptcy Act 1966 (Cth) Sch 2, Insolvency Practice Schedule (Bankruptcy) ss 5-15, 5-20, 5-30, 90-15, 90-20 Corporations Act 2001 (Cth) s 477 Corporations Act 2001 (Cth) Sch 2, Insolvency Practice Schedule (Corporations) ss 5-15, 5-20, 5-30, 60-10, 60-12, 90-15 Federal Court of Australia Act 1976 (Cth) ss 37AF, 37AG