In the matter of CNL Transport Pty Ltd (in Liq) Hunt v Smith and Another [2017] NSWSC 291

Supreme Court New South Wales

Medium Neutral Citation: In the matter of CNL Transport Pty Ltd (in Liq) Hunt v Smith and Another [2017] NSWSC 291 Hearing dates: 16 and 17 March 2017 Date of orders: 17 March 2017 Decision date: 17 March 2017 Before: Gleeson JA Decision: 16 March 2017

(1) Grant leave under s 471A of the Corporations Act 2001 (Cth) to Mr Hunt to the extent necessary to enable him to comply with any of the following orders. (2) Within one day, Mr Hunt take all steps as may be required to capitalise his contributions to the company of $214,600 by subscribing for capital in the company equivalent to the amount of that contribution on the basis that his contribution is discharged by the shares allotted to him. (3) By 17 March 2017, Mr Hunt file and serve an affidavit deposing to compliance with order 2 above. (4) The court notes the signed Irrevocable Authority and Direction dated 14 March 2017 in respect of payment of the debts owing to the liquidator, the Workers' Compensation Nominal Insurer by its agent, Allianz and the company's accountants, DFK Laurence Varney. (5) Mr Hunt to pay the liquidator's costs of the proceedings agreed at $5,500 inclusive of GST. (6) Stand over the matter to Friday, 17 March 2017 at 10am before Gleeson JA or at such later time as may be appointed for the purpose of making the order terminating the winding up of the second defendant upon the plaintiff demonstrating compliance with order 2.

17 March 2017

(1) THE COURT ORDERS pursuant to Corporations Act 2001 (Cth), s 482, that the winding up of CNL Transport Pty Limited (ACN 102 513 468) be terminated with effect from 17 March 2017. (2) That these orders be entered forthwith. Catchwords: CORPORATIONS – external administration – winding up – termination of winding up – factors informing court's discretion – whether state of affairs that caused winding up no longer exists – whether evidence of solvency – whether steps to capitalise director's contributions to the company should be taken before terminating the winding up. Legislation Cited: Corporations Act 2001 (Cth), s 459A, 459C(2)(a), 482, 482(1), 511(1)(b) Cases Cited: In the Matter of SNL Group Pty Ltd (in Liq); Su v SNL Group Pty Ltd (in Liq) [2010] NSWSC 797 Modena Imports Pty Ltd (in liq), In the Matter of Leveraged Capital Pty Ltd (R&M app) (in liq) v Modena Imports Pty Ltd (in liq) [2010] NSWSC 739 Owners Strata Plan 70294 v LNL Global Enterprises Pty Ltd & Ors (2016) 60 ACSR 646 Pine Forests of Australia (Canberra) Pty Ltd [2010] NSWSC 1127 Re Glass Recycling Pty Ltd (ACN 001 332 654) [2014] NSWSC 439 Re Warbler Pty Ltd (1982) 6 ACLR 526 Category: Principal judgment Parties: Christopher Edward Hunt (Plaintiff) Michael John Morris Smith in his capacity as Liquidator of CNL Transport Pty Limited (ACN 102 513 468 (in Liq)) (First Defendant) Workers Compensation Nominal Insurer (ABN 83 564 379 108) (Second Defendant) Representation: Counsel: DC Eardley (Plaintiff) L Dransfield (solicitor) (Defendants)