Atle Crowe-Maxwell in his capacity as liquidator of I & K Frost Pty Ltd (In Liquidation) v Frost [2014] NSWDC 153

District Court New South Wales

Medium Neutral Citation: Atle Crowe-Maxwell in his capacity as liquidator of I & K Frost Pty Ltd (In Liquidation) v Frost [2014] NSWDC 153 Hearing dates: 10 July; 11, 12 August 2014 Decision date: 13 August 2014 Jurisdiction: Civil Before: P Taylor SC DCJ Decision: (1) Judgment for Mr and Mrs Frost against the plaintiffs. (2) No order as to costs. Catchwords: COMPANY IN LIQUIDATION - small family business - no distinction between company and personal expenses - claim for unreasonable director related transactions - whether payments uncommercial - approval by shareholders - solvency - onus of proof - inadequate records - payments in lien of wages Legislation Cited: Corporations Act 2001 (Cth), s 588FB, s 588FF, s 588FDA Cases Cited: Angas Law Services Pty Ltd (in liq) v Carabelas (2005) 226 CLR 507; [2005] HCA 23 Bird v Bird (No 4) [2012] NSWSC 648 Birtchnell v Equity Trustees Executors & Agency Co Ltd (1929) 42 CLR 384 Carabelas v Scott (2003) 177 FLR 334; [2003] SASC 389 Cashflow Finance Pty Ltd v Westpac Banking Corporation [1999] NSWSC 671 Deputy Commissioner of Taxation v Zammit [2014] NSWCA 104 Fielding v Dushas [2013] 2 Qd R 416 Gudmundsen v Carrington [2012] NSWSC 147 Hawksford v Hawksford [2005] NSWSC 463 Kazar, in the matter of Frontier Architects Pty Ltd (in liq) [2010] FCA 1381 Pascoe Ltd (in liq) v Lucas (1999) 75 SASR 246 Slaven v Menegazzo [2009] ACTSC 94 Woodgate v Fawcett [2008] NSWSC 868 Category: Principal judgment Parties: Atle Crowe-Maxwell in his capacity as liquidator of I & K Frost Pty Ltd (In Liquidation) (first plaintiff) I & K Frost Pty Ltd (In Liquidation) (second plaintiff) Ian Frost (first defendant) Kathrine Frost (second defendant) Representation: Ms S Clemmett (plaintiffs) Bridges Lawyers (plaintiffs) File Number(s): 2011/364974 Publication restriction: None