Pine Forests of Australia (Canberra) Pty Ltd [2010] NSWSC 1127

New South Wales Supreme Court

CITATION : Pine Forests of Australia (Canberra) Pty Ltd [2010] NSWSC 1127

HEARING DATE(S) : 20/09/10

JUDGMENT DATE : 1 October 2010

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Barrett J

DECISION : Proceedings adjourned.

CATCHWORDS : CORPORATIONS - winding up - application by contributory for order terminating winding up - liquidator has paid all proved debts - insufficient funds to pay statutory interest on proved debts - shareholders who are also major creditors waive their own entitlements to interest and put liquidator in funds to satisfy interest entitlements of other creditors - waiver and right of liquidator to release funds to other creditors conditional on court making certain orders - one such order is order that liquidator pay interest to other creditors - liquidator inadvertently releases funds to other creditors - no basis for making order for payment by liquidator in any event - order for termination of winding up sought in form that termination to occur on interest being paid and a new director being appointed - form of order not authorised by section allowing court to terminate winding up "on a day specified in the order" - meaning of "specified" - another order sought contemplates direction for convening of general meeting to elect a new director and to consider removal of existing directors - second aspect not within scope of court's power to make directions for resumption of management and control by officers - observations on timing sequence indicated by s 482(1) and s 482(3)

LEGISLATION CITED : Corporations Act 2001 (Cth), Division 3 of Part 2G.2, ss 482(1), 482(1A)(a), 482(3), 509(6), 547(1), 563B

CATEGORY : Principal judgment