In the matter of Iris Diversified Property Pty Ltd (in liquidation) [2018] NSWSC 834

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Iris Diversified Property Pty Ltd (in liquidation) [2018] NSWSC 834 Hearing dates: 28 May 2018 Decision date: 06 June 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: The resolution that the Second Defendant be removed as liquidator of the First Defendant put at a meeting of creditors of the First Defendant held on 16 November 2017 is taken to have been passed at that meeting. Messrs Bailey and Palmer be appointed as joint liquidators of the First Defendant. The Second Defendant to pay the Plaintiff's costs of and incidental to these proceedings, as agreed or as assessed, without recourse to the assets of the First Defendant. Catchwords: CORPORATIONS – application under s 75-41(3)(d) or s 75-43(4) of the Insolvency Practice Schedule (Corporations) for order that resolution to remove liquidator be treated as passed at meeting of creditors of company – where failure to pass that resolution was adverse to the interests of the creditors of the company as a whole – where failure to pass the resolution prejudiced, or is reasonably likely to prejudice, the interests of the creditor which voted against the proposal to an unreasonable extent – whether that resolution to remove liquidator should be treated as passed and order made for replacement liquidators to be appointed. Legislation Cited: - Corporations Act 2001 (Cth) ss 503, 600A, Sch 2 ss 75-41, 75-43, 90-15, 90-35 Cases Cited: - Boral Resources (SA) Ltd v Rick Martin Nominees Pty Ltd (No 2) [2012] SASC 192 - Brisconnections Management Company Ltd v Burness [2009] FCA 626; (2009) 72 ACSR 233 - Deputy Commissioner of Taxation v Portinex Pty Ltd [2000] NSWSC 99; (2000) 156 FLR 453; 34 ACSR 391 - James, in the matter of Liquor National Pty Ltd (in liq) v Liquor National Pty Ltd (in liq) (No 2) [2017] FCA 1154 - Lo v Nielsen & Moller (Autoglass) (NSW) Pty Ltd [2008] NSWSC 407; (2008) 26 ACLC 497 - Re ACN 151 726 224 Pty Ltd (in liq) previously Ridley Capital Holdings Pty Ltd [2016] NSWSC 1801 - Re Ambient Advertising Pty Ltd (in liq) [2015] NSWSC 1079 - Redowood Pty Ltd v Goldstein Technology Pty Ltd [2004] NSWSC 317 - State of Victoria v Goulburn Administration Services (in liq) [2016] VSC 654 - Unifor Office Systems Aust Pty Ltd v Brewer Partnership Pty Ltd (1999) 17 ACLC 642 Category: Principal judgment Parties: The Owners – Strata Plan 84741 (Plaintiff) Iris Diversified Property Pty Ltd (in liquidation) (First Defendant) Henry Peter McKenna (Second Defendant) Representation: Counsel: R Glasson (Plaintiff) R D Marshall SC/L Chapman (Second Defendant)