In the matter of HIH Insurance Limited (In Liquidation) (ACN 008 636 575) and others; Smith and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others; Baldock and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others;; De Bortoli Wines (Superannuation) Pty Ltd and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others; Cuong Ly and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others [2016] NSWSC 482

Supreme Court New South Wales

Medium Neutral Citation: In the matter of HIH Insurance Limited (In Liquidation) (ACN 008 636 575) and others; Smith and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others; Baldock and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others;; De Bortoli Wines (Superannuation) Pty Ltd and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others; Cuong Ly and Others v Anthony Gregory McGrath (in his capacity as Liquidator of HIH Insurance Limited (in liquidation)) and Others [2016] NSWSC 482 Hearing dates: 24-27 February, 3-6 March 2015, 2 July 2015 Date of orders: 20 April 2016 Decision date: 20 April 2016 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: See para 119 Catchwords: CORPORATIONS – TRADE PRACTICES – misleading and deceptive conduct – accessorial liability – whether subsidiaries were knowingly concerned in holding company's misleading and deceptive conduct in releasing financial results which were overstated by reason of incorrect accounting treatment of a transaction – where overstated financial statements of holding company consolidated results for subsidiaries – where overstatement in subsidiaries' financial statements was genesis of overstatement in holding company's statements – whether officer who authorised subsidiaries' financial statements had requisite knowledge that they would be carried forward into consolidated results and render them misleading – held, actual knowledge inferred in absence of contrary evidence from officer's experience as an accountant, responsibilities as Chief Financial Officer, and involvement in the transaction.