In the matter of Matlic Pty Ltd (in liq) [2014] NSWSC 1342

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Matlic Pty Ltd (in liq) [2014] NSWSC 1342 Hearing dates: 19 - 21 and 26 August 2014 Decision date: 01 October 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Orders made for proceedings to be dismissed and for plaintiff to pay first and second defendants' costs of proceedings, as agreed or as assessed. Catchwords: CORPORATIONS - winding up - winding up in insolvency - insolvent trading - claim by creditor for compensation from directors under Corporations Act 2001 (Cth) s 588M -loan agreement with plaintiff executed by person who was not company officer - where plaintiff paid funds in two tranches to another company or person - whether relevant company incurred a debt to plaintiff - whether person had actual authority to execute agreement on behalf of company - whether company was insolvent or became insolvent by incurring such debt - presumptions of insolvency - whether reasonable grounds for suspecting company was insolvent or would so become insolvent - whether defendants failed to prevent company from incurring such debt - knowledge of grounds for insolvency - defences - whether defences under Corporations Act s 588H established. Legislation Cited: - Corporations Act 2001 (Cth) ss 95A, 95A(1), 95A(2), 128(1), 128(4), 129, 129(3), 286(1), 588E(1)(e), 588E(4), 588E(9), 588G, 588G(1)(a), 588G(1)(b), 588G(1)(c), 588G(2), 588H, 588H(2), 588H(3), 588M, 588M(3) - Corporations Act s 286 - Evidence Act 1995 (NSW) s 136 Cases Cited: - Australia & New Zealand Banking Group Ltd v Frenmast Pty Ltd [2013] NSWCA 459 - Australian Securities and Investments Commission v Plymin (No 1) [2003] VSC 123; (2003) 175 FLR 124 - Brick & Pipe Industries Ltd v Occidental Life Nominees Pty Ltd [1992] 2 VR 279; (1991) 6 ACSR 464 - Byron v Southern Star Group Pty Ltd (1996) 136 FLR 267; 22 ACSR 553 - Dean-Willcocks v Air Transit International Pty Ltd [2002] NSWSC 525; (2002) 55 NSWLR 64 - Edenden v Bignell [2008] NSWSC 666 - Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50; 11 ACSR 642 - First Strategic Development Corp Ltd (in liq) v Chan [2014] QSC 60 - International Cat Manufacturing Pty Ltd (in liq) v Rodrick [2013] QCA 372; (2013) 97 ACSR 200 - Junker v Hepburn [2010] NSWSC 88 - Lewis v Doran [2004] NSWSC 608; (2004) 208 ALR 385 - Leybourne v Permanent Custodians Ltd [2010] NSWCA 78 - Metropolitan Fire Systems Pty Ltd v Miller (1997) 23 ACSR 699 - Mulherin v Bank of Western Australia Ltd [2006] QCA 175 - Northside Developments Pty Ltd v Registrar-General [1990] HCA 32; (1990) 170 CLR 146 - Perkins v National Australia Bank Ltd [1999] SASC 39; (1999) 30 ACSR 256 - Powell v Fryer [2001] SASC 59; (2001) 159 FLR 433 - Re Ashington Bayswater Pty Ltd (in liq) [2013] NSWSC 1008 - Sargent v ASL Developments Ltd (1974) 131 CLR 634 - Soyfer v Earlmaze Pty Ltd [2000] NSWSC 1068 - Standard Chartered Bank of Australia Ltd v Antico (1995) 38 NSWLR 290; 18 ACSR 1 - Story v Advance Bank Ltd (1993) 31 NSWLR 722 - Tourprint International Pty Ltd (in liq) v Bott [1999] NSWSC 581; (1999) 32 ACSR 201 - Williams (as liquidator of Scholz Motor Group P/L (in liq)) v Scholz [2008] QCA 94 Texts Cited: - R Austin and I Ramsay, Ford's Principles of Corporations Law, (15th ed 2012, LexisNexis Butterworths) Category: Principal judgment Parties: Christopher Luff (Plaintiff) Melinda Matthews (First Defendant) Giovanni Licuria (Second Defendant) Representation: Counsel: M Bennett (Plaintiff) C Robinson (First Defendant) J E Richards (Second Defendant) Solicitors: Marsdens Solicitors (Plaintiff) Mitry Lawyers (First Defendant) Dimarco Lawyers Second Defendant) File Number(s): 2012/117832