Angus Carnegie Gordon in his capacity as liquidator of Lyon Form Pty Ltd (in liq) & Anor v Leon Plant Hire Pty Ltd (in liq) & Ors [2015] NSWSC 397

Supreme Court New South Wales

Medium Neutral Citation: Angus Carnegie Gordon in his capacity as liquidator of Lyon Form Pty Ltd (in liq) & Anor v Leon Plant Hire Pty Ltd (in liq) & Ors [2015] NSWSC 397 Hearing dates: 24 – 25 February 2015 Decision date: 10 April 2015 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Order under s 588FF of the Corporations Act 2001 (Cth) in favour of the liquidator. No order as to subrogation. Declare that the company is entitled to relief by way of equitable charge over real property in specified amount. No declaration as to a constructive trust. Order that the company is entitled to equitable compensation and damages for breaches of directors' duties. Order that interest be paid on those amounts and costs. Catchwords: CORPORATIONS – winding up – winding up in insolvency – where a company paid mortgage repayments to a financier in respect of loan by associated parties – whether uncommercial transaction under s 588FB of the Corporations Act 2001 (Cth).

CORPORATIONS – winding up – winding up in insolvency – where financial records were inaccurate and required substantial further information to explain the transaction – whether the records correctly record and explain the company's financial position – whether presumption of insolvency under s 588E(4) of the Corporations Act 2001 (Cth) – whether presumption of insolvency rebutted.

CORPORATIONS — management and administration — duties and liabilities of officers of corporation — directors' duties — claim for breach of statutory and fiduciary duties – where director failed to consider creditors – whether director had a conflict of interest or improperly used his position.