Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace (No 2) [2024] FCA 957

FEDERAL COURT OF AUSTRALIA

Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace (No 2) [2024] FCA 957 File number(s): NSD 416 of 2022

Judgment of: HALLEY J

Date of judgment: 23 August 2024

Catchwords: CORPORATIONS – insolvent trading – application by liquidator of company against former director for breach of statutory directors' duty to prevent insolvent trading pursuant to s 588G of the Corporations Act 2001 (Cth) (Act) – whether the defendant was a director at the time each of the impugned debts was incurred – whether defendant was aware of grounds to suspect company was insolvent at all times impugned debts were incurred or whether a reasonable person in a like position would have been aware of grounds to suspect company was insolvent – debts incurred in breach of s 588G of the Act CORPORATIONS – defence pursuant to s 588H(2) of the Act – whether defendant had reasonable grounds to expect and did expect company was solvent when impugned debts were incurred – defence not made out – defence pursuant to s 588H(3) of the Act – whether director had reasonable grounds to believe and did believe that another competent and reliable person was responsible for providing him with adequate information as to company's solvency, and whether information was sufficient to expect that company was solvent at times impugned debts were incurred – defence not made out

Legislation: Corporations Act 2001 (Cth) ss 95A, 459A, 588G, 588M, 588H

Cases cited: Australian Securities and Investments Commission v Edwards (2005) 220 ALR 148; [2005] NSWSC 831 Australian Securities and Investments Commission v Plymin (No 1) (2003) 175 FLR 124; [2003] VSC 123 Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14 Hall v Poolman (2007) 215 FLR 243; [2007] NSWSC 1330 Manpac Industries Pty Ltd v Ceccattini (2002) 1 NSWLR 786; [2002] NSWSC 330 Queensland Bacon Pty Ltd v Rees (1965) 115 CLR 266 Smith v Bone (2015) 104 ACSR 528; [2015] FCA 319 Stone (liquidator), in the matter of Ironbark Blacksmithing Pty Ltd (in liq) v Mizzi [2024] FCA 696 Tourprint International Pty Ltd (in liq) v Bott (1999) 32 ACSR 201; [1999] NSWSC 581