Honest Remark Pty Limited v Allstate Explorations NL & ors [2006] NSWSC 735

58 ACSR 234 Reported Decision : 201 FLR 456 (2006) 24 ACLC 936

New South Wales Supreme Court

CITATION : Honest Remark Pty Limited v Allstate Explorations NL & ors [2006] NSWSC 735

HEARING DATE(S) : 22/9/05, 21/10/05

JUDGMENT DATE : 21 July 2006

JURISDICTION : Equity Division

JUDGMENT OF : Brereton J

DECISION : Application for appointment of special purpose administrator dismissed with costs.

CATCHWORDS : CORPORATIONS – External administration – administration under deed of company arrangement – special purpose administrator – whether court has power to appoint special purpose administrator to investigate conduct of original administrators – nature and role of special purpose administrator – whether investigation and supervision of administrator is part of administration - whether order appointing special purpose administrator to investigate conduct of original administrators is an order as to how Part 5.3A is to operate in a particular case under s 447A – whether duty of liquidator or administrator extends to investigating own conduct in the administration – where no allegation that corporation would be better off if investigation conducted – whether failure to perform such investigation could be relevant prejudicial management for purposes of s 447E – whether court has inherent jurisdiction to appoint special purpose administrator for purpose of investigating conduct of deed administrator - whether power to appoint special purpose administrator, if it exists, could appropriately be exercised on the plaintiff's case taken at its highest – where special purpose administrator inapt remedy and other appropriate and orthodox statutory remedies are available – held, taking plaintiff's claim at its highest, no power to grant relief sought, but if there were power, it would be manifestly unreasonable to grant that relief - (Cth) Corporations Act, 2001, ss 236, 237, 241, 447A, 447E, 536, 1321.