In the matter of Condor Blanco Mines Ltd [2016] NSWSC 1196

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Condor Blanco Mines Ltd [2016] NSWSC 1196 Hearing dates: 18, 19 August 2016 Decision date: 30 August 2016 Jurisdiction: Equity Before: Barrett AJA Decision: 1. Declare that the appointment of the defendant, Domenic Calabretta, as voluntary administrator of the plaintiff, Condor Blanco Mines Ltd, on 4 July 2016 was invalid, void and of no effect. 2. The question of costs is reserved. Catchwords: CORPORATIONS – voluntary administration – where the board of a public company consisting of two directors only resolves to appoint administrators – whether in fact both directors participated in the passing of the resolution – whether both directors held a genuine opinion in good faith that the company was insolvent or likely to become so – whether the directors acted for an improper purpose of defeating the wishes of the shareholders who were about to vote to reconstitute the board – whether the resolution of the board of a company having fewer than the statutory minimum of directors was an effective resolution – whether the administrator discharged his responsibility to assess the validity of his appointment – the nature and scope of that responsibility discussed – whether the administrator should have commenced proceedings to test the validity of his appointment. Legislation Cited: Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Cases Cited: Aloridge Pty Ltd v Christianos [1994] FCA 972; 13 ACSR 99 Australian Securities and Investments Commission v Planet Platinum Ltd [2015] VSC 682 Australian Securities and Investment Commission v Planet Platinum Ltd [2016] VSC 120; 112 ACSR 570 Australian Securities and Investments Commission v Sino Australia Oil and Gas Ltd [2015] FCA 531; 106 ACSR 575 Blacktown City Council v Macarthur Telecommunications Pty Ltd [2003] NSWSC 883 ; 47 ACSR 391 Cadwallader v Bajco Pty Ltd [2001] NSWSC 1193; 189 ALR 370 Calabretta v Redpen Developments Pty Ltd [2010] FCA 81; 183 FCR 47 Correa v Whittingham [2013] NSWCA 263; 278 FLR 310 Deputy Commissioner of Taxation v Portinex Pty Ltd [2000] NSWSC 99; 156 FLR 453 Downey v Crawford [2004] FCA 1264; 51 ACSR 182 Fitzgerald v F J Leonhardt Pty Ltd [1997] HCA 17; 189 CLR 215 Glenmorton Holdings Pty Ltd v D'Aloia [2001] FCA 1331 Gosford Christian School Ltd v Totonjian [2006] NSWSC 725; 201 FLR 424 Howard Smith Ltd v Ampol Petroleum Ltd [1974] UKPC 3; [1974] AC 821 In the matter of Beechworth Land Estates Pty Ltd (No 3) [2015] NSWSC 733; 298 FLR 233 In the matter of Lime Gourmet Pizza Bar (Charlestown) Pty Ltd [2015] NSWSC 244 In the matter of Live Board Holdings Ltd [2014] NSWSC 161 In the matter of O'Neill v Advantage Hearing Pty Ltd [2013] NSWSC 175 In the matter of Ryde Ex-Services Memorial & Community Club Ltd [2015] NSWSC 125 In the matter of Sales Express Pty Ltd [2014] NSWSC 460; 9 BFRA 251 In the matter of Warwick Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd [2015] NSWSC 937; 107 ACSR 172 Jack James as Administrator of ZYL Ltd [2015] WASC 57 Kazar v Duus [1998] FCA 1378; 88 FCR 218 McDonald, in the matter of Pasdonnay Pty Ltd [2005] FCA 335; 53 ACSR 717 Re ACN 101 445 916 Pty Ltd [2004] NSWSC 710 Re Continental Pacific Insurance Co (Aust) Ltd [2002] NSWSC 789 Re Creative Memories Australia Pty Ltd [2013] NSWSC 652 Re Darin (as administrators of Palamedia Ltd) [2010] NSWSC 451 Re DH International Pty Ltd [2013] NSWSC 1120; (2013) 95 ACSR 578 Re Ethan Minerals Ltd [2011] NSWSC 899 Re HPI Australia Pty Ltd [2008] NSWSC 1106 Re Kala Capital Pty Ltd [2011] NSWSC 1253 Re Newman Rivergums Village Operations Pty Ltd [2015] WASC 443 Re Nillumbik Community Church Inc [2010] VSC 136 Ross v GNC Homes Pty Ltd [2015] SASC 168; 110 ACSR 60 Sliteris v Ljubic [2014] NSWSC 1632 Smolarek v McMaster (as administrator of Eznut Pty Ltd) [2006] WASCA 216 Smolarek v McMaster as administrator of Eznut Pty Ltd (No 2) [2008] WASCA 234; 3 BFRA 419 Spacorp Australia Pty Ltd v Fitzgerald [2001] VSC 61; 19 ACLC 1979 St Leonards Property Pty Ltd v Ambridge Investments Pty Ltd [2004] NSWSC 851; 210 ALR 265 Weinstock v Beck [2013] HCA 14; 251 CLR 396 Whitehouse v Carlton Hotel Pty Ltd [1987] HCA 11; 162 CLR Wilson v Manna Hill Mining Company Pty Ltd [2004] FCA 1663; 51 ACSR 404 Workers Compensation Nominal Insurer v Perfume Empire Pty Ltd [2011] NSWSC 379 Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd [1978] HCA 42; 139 CLR 410 Category: Principal judgment Parties: Plaintiff – Condor Blanco Mines Ltd Defendant – Domenic Calabretta Representation: Counsel: Plaintiff – Mr DA Smallbone with him Mr J Wheeldon Defendant – Mr S Golledge