Re Spargold Enterprises Pty Limited: ex parte Geoffrey David McDonald & Anor [1999] NSWSC 623

Reported Decision : (1999) 32 ACSR 363 (1999) 17 ACLC 1526

New South Wales Supreme Court CITATION : Re Spargold Enterprises Pty Limited: ex parte Geoffrey David McDonald & Anor [1999] NSWSC 623 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 2756/99 HEARING DATE(S) : 21/06/99 JUDGMENT DATE : 21 June 1999

PARTIES : In the matter of Spargold Enterprises Pty Limited (subject to Deed of Company Arrangement) ACN 069 345 286 and the Corporations Law: Geoffrey David Mcdonald and Peter David Rodgers (Ps) JUDGMENT OF : Santow J

COUNSEL : P M Fordyce (Sol) (P) ex parte SOLICITORS : P. A. Somerset & Co (P) ex parte CATCHWORDS : CORPORATIONS — Duty of Administrator of a deed of company arrangement ("DCA") to act impartially between creditors — Position of post DCA creditors who would get nothing if distribution to other creditors made under DCA — Termination of deed to prevent such distribution — Standing of DCA administrator to apply for termination of deed — Suspension of orders to terminate DCA and winding-up to enable pre-DCA creditors to make submissions. ACTS CITED : Corporations Law Pt 5.7B, s451C(a), s443A, D and E, s445D, s447E, s513B, s513C, s588FE(2) Re Britton & Millard Ltd (1957) 107 LJO 601 CASES CITED : Sycotex Pty Ltd v Baseler (1994) 122 ALR 531 Thomas Franklin & Sons Ltd v Cameron (1935) 36 SR(NSW) 286 Walker v Wimborne (1976) 137 CLR 1 DECISION : Deed of Company Arrangement terminated and company to be wound up and with orders suspended.

Spargold.21June99 — 24 June, 1999: Re Spargold Enterprises Pty Limited: ex parte Geoffrey David McDonald & Anor 6 REVISED — 24 June, 1999 IN THE SUPREME COURT OF NEW SOUTH WALES IN EQUITY