Commissioner of State Revenue v McCabe (No 2) [2024] FCA 662

Federal Court of Australia

Commissioner of State Revenue v McCabe (No 2) [2024] FCA 662 File number(s): QUD 99 of 2023

Judgment of: SARAH C DERRINGTON J

Date of judgment: 21 June 2024

Catchwords: CORPORATIONS – voluntary administration – resolution of creditors of corporate group to execute Deed of Company Arrangement (DOCA) – application by Commissioner of State Revenue under ss 445D(1) or s 447A of the Corporations Act 2001 (Cth) to set aside DOCA CORPORATIONS – whether DOCA continuing on foot is against public interest and commercial morality – construction of public interest and commercial morality – whether DOCA subverts object of Pt 5.3A of the Corporations Act – whether DOCA shields directors from scrutiny and possible claims for breaches of duty – whether better prospects of recovery for creditors in a liquidation than under DOCA CORPORATIONS – whether Report to Creditors false and misleading for non-disclosure of material information about payroll tax liabilities details of the companies' solvency – whether companies failed to maintain books and records in breach of s 286 of the Corporations Act – whether material omission from the Report to report on or to conduct investigations into companies' taxation liability or failing to adjourn Second Meeting of Creditors to enable such investigations CORPORATIONS – whether DOCA unfairly discriminatory against Commissioner as creditor within the meaning of s 445D(1)(f)(i) of the Corporations Act CORPORATIONS – alternative order sought that Administrators' casting vote be set aside under s 75-42 of the Insolvency Practice Schedule (Corporations) 2016, Schedule 2 to the Corporations Act – whether Administrators' exercise of casting vote appropriate and DOCA should be deemed not to have passed at Second Meeting