In the matter of D & D Corak Investments (In Liquidation) Pty Limited [2020] NSWSC 1197

Supreme Court New South Wales

Medium Neutral Citation: In the matter of D & D Corak Investments (In Liquidation) Pty Limited [2020] NSWSC 1197 Hearing dates: 25 August 2020 Date of orders: 25 August 2020 Decision date: 25 August 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Special leave to liquidator to distribute surplus under section 488(2), Corporations Act 2001 (Cth). Catchwords: CORPORATIONS – liquidation – special leave to distribute surplus – s 488(2), Corporations Act 2001 (Cth) – creditors paid – $8.7 million surplus – shareholder owes $1.8 million to company – shareholder later became bankrupt – application of rule in Cherry v Boultbee Legislation Cited: Corporations Act 2001 (Cth), s 488(2) Corporations Regulations 2001 (Cth) Cases Cited: CGU Workers Compensation (NSW) Ltd v Ascom Service Automation Australia) Pty Ltd [2005] NSWSC 747 Cherry v Boultbee (1839) 4 My & Cr 442 Gray v Gray [2004] NSWCA 408 In Re Kaupthing Singer & Friedlander Ltd (In Administration) [2011] UKSC 48; [2012] 1 AC 804 In the matter of Anne Lewis Pty Limited [2016] NSWSC 1860 In the matter of Hawden Property Group Pty Ltd (in liq) (ACN 003 528 345) [2018] NSWSC 481 In the matter of Klaus Maertin Pty Ltd (in liq); Maertin v Klaus Maertin Pty Ltd [2009] NSWSC 618; (2009) 232 FLR 239 Lombe as liquidator of Ulicorp Pty Ltd [2009] NSWSC 536; (2009) 74 NSWLR 669 Re DS Millard & Son Pty Ltd (1997) 24 ACSR 71 Re Minister for Immigration and Ethnic Affairs; Ex parte Lai Qin (1997) 186 CLR 622 Re Peruvian Railway Construction Company Ltd [1915] 2 Ch 144 Re Rhodesia Goldfields Ltd; Partridge v Rhodesia Goldfields Ltd [1910] 1 Ch 239 Texts Cited: Derham on the Law of Set-Off (4th ed, 2010, Oxford University Press) Category: Principal judgment Parties: Steven Nicols as liquidator of D & D Corak Investments Pty Ltd (in liquidation) (Plaintiff) Marie Ellersdorfer as Administrator of the Estate of the late Dane Corak (First Defendant) Marie Ellersdorfer (Second Defendant) Lynette Boyd (Third Defendant) Judy Anne Corak (no appearance) (Fourth Defendant) Joshua Taylor, as Trustee of the Bankrupt Estate of Judy Anne Feeney (Fifth Defendant) Representation: Counsel: Mr E Young/Ms F McNeil (Plaintiff) Mr M Bennett (First and Second Defendants) Mr JD O'Connor (Third Defendant) Mr R Notley (Fifth Defendant)