In the matter of Banksia Securities Limited (in liquidation) (receivers and managers appointed) [2018] NSWSC 629

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Banksia Securities Limited (in liquidation) (receivers and managers appointed) [2018] NSWSC 629 Hearing dates: 28 March 2018 Decision date: 08 May 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Special Purpose Receivers of Banksia Securities Ltd (in liq) (recs and mgrs apptd) ("BSL") have the power to settle the claims made by BSL against The Channel Syndicate and AmTrust Syndicates Ltd for and on behalf of the underwriting members of Syndicate 1206 at Lloyd's of London in Supreme Court of Victoria proceedings No S Cl 2012 7185. The Special Purpose Receivers are justified in causing BSL to settle its claims in those proceedings. Catchwords: CORPORATIONS – application by special purpose receivers under s 283HB of the Corporations Act 2001 (Cth) for direction that they have power to settle claims made by company – where applicants were previously appointed by Court as special purpose receivers under s 283HB of the Corporations Act – whether Court has jurisdiction under s 283HB of the Corporations Act or s 67 of the Supreme Court Act 1970 (NSW) to give such direction to the special purpose receivers – whether proposed settlement is within the class of questions on which the special purpose receivers may legitimately seek directions – whether directions sought by the special purpose receivers should be given Legislation Cited: - Banking Act 1959 (Cth) - Corporations Act 2001 (Cth) ss 283BB, 283F, 283HB, 424, 479, 511 - Supreme Court Act 1970 (NSW) s 67 Cases Cited: - Australian Executor Trustees Ltd v Provident Capital Ltd [2012] FCA 728; (2012) 90 ACSR 650 - Australian Securities and Investments Commission v Bridgecorp Finance Ltd [2006] NSWSC 836; (2006) 58 ACSR 499 - Re Banksia Securities Ltd (in liq) (recs and mgrs apptd) [2015] NSWSC 1378 - Re Banksia Securities Ltd (in liq) (recs and mgrs apptd) [2016] NSWSC 357 - Re Banksia Securities Ltd (recs and mgrs apptd) [2017] VSC 148 - Re Metal Storm Ltd (subject to Deed of Company Arrangement) [2014] NSWSC 813; (2014) 100 ACSR 637 - Re One.Tel Ltd (2014) 99 ACSR 246 - Trust Company (Nominees) Ltd v Angas Securities Ltd [2015] FCA 772; (2015) 107 ACSR 464 - Trust Co (Nominees) Ltd v Southern Finance Ltd, Re Southern Finance Ltd [2012] FCA 1339 - Unity Insurance Brokers Pty Ltd v Rocco Pezaano Pty Ltd (1998) 192 CLR 603 Category: Procedural and other rulings Parties: The Trust Company (Nominees) Limited (Plaintiff) John Ross Lindholm and Peter Damien McCluskey (Special Purpose Receivers) Representation: Counsel: J Redwood/P Bindon (Applicants - Special Purpose Receivers)