In the matter of Banksia Securities Limited (in liquidation) (receivers and managers appointed) [2016] NSWSC 357

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Banksia Securities Limited (in liquidation) (receivers and managers appointed) [2016] NSWSC 357 Hearing dates: 29 February 2016 Decision date: 01 April 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: Applicants be appointed special purpose receivers over certain property of the company. Orders made that Applicants be funded to prosecute and defend certain proceedings as special purpose receivers of company. Direction made that liquidators are justified in not taking steps to replace trustee. Catchwords: CORPORATIONS — Winding up — Application under s 283HB of the Corporations Act 2001 (Cth) to appoint liquidators as special purpose receivers over claims of a company – where applicants were previously appointed by court as special purpose receivers over other related claims under s 283HB of the Corporations Act 2001 (Cth) and liberty to apply for further orders was granted – where applicants also sought orders providing them funds to prosecute and defend claims as special purpose receivers of company – whether court has jurisdiction under s 283HB of the Corporations Act 2001 (Cth).

CORPORATIONS — Winding up — Application for directions under s 479(3) of the Corporations Act 2001 (Cth) – where liquidators sought directions whether they are justified in not taking steps to cause company to replace trustee notwithstanding a potential breach by the company of s 283BD(c) of the Corporations Act 2001 (Cth) – whether to make direction under s 479(3) of the Corporations Act 2001 (Cth). Legislation Cited: - Corporations Act 2001 (Cth), ss 283AC, 283AD, 283AE, 283BD, 283BF, 283B#, 283DA, 283HA, 283HB, 418, 479, Pt 2L Uniform Civil Procedure Rules 2005 (NSW), r 36.16 Cases Cited: - Australian Executor Trustees Ltd v Provident Capital Ltd (recs and mgrs apptd) (in liq) [2015] FCA 781; (2015) 107 ACSR 567 - Australian Executor Trustees Ltd v Provident Capital Ltd [2012] FCA 728; (2012) 90 ACSR 650 - Australian Securities & Investments Commission v Maxwell [2006] NSWSC 1052; (2006) 59 ACSR 373 - Australian Securities and Investments Commission v Bridgecorp Finance Ltd [2006] NSWSC 836; (2006) 58 ACSR 499 - Australian Securities and Investments Commission v GDK Financial Solutions Pty Ltd (in liq) (No 3) [2008] FCA 448; (2008) 246 ALR 580 - Cameron v Renouf [2008] WASC 60 - Cape v Redarb Pty Ltd (Receiver and Manager appointed) (1991) 32 FCR 407 - Re Banksia Securities Limited (in liquidation) (receivers and managers appointed) (No 2) [2015] NSWSC 1449 - Re Metal Storm (subject to Deed of Company Arrangement) [2014] NSWSC 813; (2014) 100 ACSR 637 - Re MF Global Australia Ltd (in liq) [2012] NSWSC 994; (2012) 267 FLR 27 - Trust Co (Nominees) Ltd v Southern Finance Ltd, Re Southern Finance Ltd [2012] FCA 1339 - Trust Company (Nominees) Ltd v Angas Securities Ltd [2015] FCA 772; (2015) 107 ACSR 464 Texts Cited: - Michael Murray and Jason Harris, Keay's Insolvency: Personal and Corporate Law and Practice, (8th ed 2014, Lawbook Co) Category: Procedural and other rulings Parties: The Trust Company (Nominees) Limited (Plaintiff) John Ross Lindholm and Peter Damien McCluskey (Special Purpose Receivers - Applicants) Anthony Gregory McGrath, Joseph David Hayes, Matthew Wayne Caddy and Robert Michael Kirman (Receivers) Australian Securities and Investments Commission (amicus curiae) Representation: Counsel: B Coles QC (Plaintiff) N C Hutley SC/J A Redwood (Applicants) P D Crutchfield QC/B A McLachlan (Receivers) M Izzo (ASIC)