Ligon 158 Pty Limited (in liq) v Shield Holdings Australia Pty Ltd (in liq) (Special Purpose Liquidator) [2025] FCA 3

Federal Court of Australia

Ligon 158 Pty Limited (in liq) v Shield Holdings Australia Pty Ltd (in liq) (Special Purpose Liquidator) [2025] FCA 3 File number(s): NSD 1023 of 2022

Judgment of: CHEESEMAN J

Date of judgment: 9 January 2025

Catchwords: CORPORATIONS – application for appointment of an additional (special purpose) liquidator – where the proposed special purpose liquidator is the general purpose liquidator of other related corporate entities – where the proposed special purpose liquidator brought a successful application to reinstate the company to the register and have it wound up but was unsuccessful in his application to be appointed as the general purpose liquidator of that company due to the potential for conflict of interest – where interested parties, being the director and shareholder of the company, oppose the appointment of a special purpose liquidator – where the relevant context includes documented settlements of proceedings, one such deed which is the subject of challenge in proceedings at early stage – where the potential utility of the appointment depends amongst other things on the validity of the settlement deed – where the special purpose is closely confined and is directed to the efficient performance of investigations into the affairs of the company – where the general purpose liquidator of the company supports the application for the appointment of the special purpose liquidator – whether to appoint the special purpose liquidator – Held: application granted.

Legislation: Corporations Act 2001 (Cth), ss 472, 483, 601AB Corporations Act 2001 (Cth), Schedule 2 — Insolvency Practice Schedule (Corporations), ss 5-30(a)(ii), 90-15(1), 90-15(3)(c), 90-20