Australian Securities and Investments Commission v Wily & Hurst [2019] NSWSC 521

Supreme Court New South Wales

Medium Neutral Citation: Australian Securities and Investments Commission v Wily & Hurst [2019] NSWSC 521 Hearing dates: 5, 6 September 2017 Date of orders: 09 May 2019 Decision date: 09 May 2019 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Originating Process seeking inquiry under Corporations Act, s 536, dismissed with costs Catchwords: CORPORATIONS – external administration – liquidators – supervisory jurisdiction – application for inquiry into conduct of liquidations – where ASIC conducted investigation into conduct of liquidations – whether sufficient case of misconduct to warrant inquiry – whether liquidators should have declined appointment on account of apparent conflicts, or disclosed those conflicts – whether liquidators ought to have reported possibilities of shadow directors and unlawful phoenixing – where administrations without assets – discretionary considerations – strength and nature of allegations – delay – utility – availability of alternative remedies – role of "second appointee" in joint and several appointment – subsequent practice – financial circumstances Legislation Cited: (CTH) Australian Securities and Investments Commission Act 2001, s 13(3), s 19, s 33 (CTH) Corporations Act 2001, s 60, s 206F, s 506A, s 513, s 532, s 533, s 536, s 545, s 1279, s 1282, s 1283, s 1290(1), s 1292(3), s 1560(4), s 1617, Insolvency Practice Schedule (Corporations) cl 40-55, cl 40-65, cl 45-1, Div 90, cls 90‑5, 90‑10, 90‑15, 90‑20 (CTH) Corporations Regulations 2001, reg 10.25.02(3)(i) (CTH) Insolvency Law Reform Act 2016, Sch 2 (NSW) Supreme Court (Corporations) Rules 1999, r 7.11 Cases Cited: ACN 151 726 224 Pty Ltd (in liq), In the matter of [2016] NSWSC 1801 Ah Toy v Registrar of Companies (NT) (1986) 10 FCR 356; (1986) 10 ACLR 630; (1986) 4 ACLC 480 Australian Securities and Investments Commission v Edge (2007) 211 FLR 137; [2007] VSC 170 Australian Securities and Investments Commission v Farley (2001) 51 NSWLR 494; [2001] NSWSC 326 Australian Securities and Investments Commission v Hamilton (CALDB, 3 April 2014, Matter No 04/NSW13) Belvista Pty Ltd v Murphy & Triden Contractors Ltd (1993) 11 ACSR 628 Biposo Pty Ltd, Re (1995) 17 ACSR 730 BL & GY International Co Ltd v Hypec Electronics Pty Ltd (2010) 79 ACSR 558; [2010] NSWSC 959 Boral Gas (NSW) Pty Ltd v Magill (1993) 32 NSWLR 501 Burns Philp Investments Pty Ltd v Dickens (No 1) (1993) 11 ACLC 272 Burns Philp Investments Pty Ltd v Dickens (No 2) (1993) 31 NSWLR 280; (1993) 10 ACSR 626; (1993) 11 ACLC 525 Clasquin SA v AAR International Pty Ltd (1989) 15 ACLR 9 Commissioner for Corporate Affairs (Vic) v Harvey [1980] VR 669; (1979) 4 ACLR 259 Day & Dent Constructions Pty Ltd, Re (1984) 32 NTR 13; (1984) 75 FLR 355; (1984) 9 ACLR 319; (1985) 3 ACLC 11 Fox Home Loans Pty Ltd (in liq), Re [2005] NSWSC 1050 GIS Electrical Pty Ltd v Melsom (2002) 172 FLR 218; (2002) 43 ACSR 481; (2003) 21 ACLC 46; [2002] WASCA 302 Glowbind Pty Ltd (in liq), Re; Takchi v Parbery (2003) 181 FLR 208; (2003) 48 ACSR 456; (2004) 22 ACLC 642; [2003] NSWSC 1190 Hall v Poolman (2009) 75 NSWLR 99; (2009) 254 ALR 333; (2009) 71 ACSR 139; [2009] NSWCA 64 Heesh and Companies Auditors and Liquidators Disciplinary Board, Re (2001) 61 ALD 555; (2001) 37 ACSR 198; [2001] AATA 87 Herron v McGregor (1986) 6 NSWLR 246 Hill v King (1993) 31 NSWLR 654 Jenkins v Jonkay Pty Ltd [2007] FCA 858 Kennards Hire Pty Ltd v RMGA Pty Ltd [2010] NSWSC 1387 Leslie v Hennessy; Re Aboriginal Councils and Associations Act 1976 [2001] FCA 371 Lollback v Brakepower Pty Ltd [2010] NSWSC 1457 Love, Re (2003) 44 ACSR 367; [2003] NSWSC 58 Mamone v Pantzer (2001) 36 ACSR 743; [2001] NSWSC 26 Meagher v Stephenson (1993) 30 NSWLR 736 Murdaca v Australian Securities and Investments Commission (2009) 178 FCR 119; [2009] FCAFC 92 New South Wales Bar Association v Cummins (2001) 52 NSWLR 279; [2001] NSWCA 284 Northbourne Developments Pty Ltd v Reiby Chambers Pty Ltd (1989) 19 NSWLR 434; (1989) 1 ACSR 79; (1989) 8 ACLC 39 Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266; [1966] HCA 21 Richmond Sales Pty Ltd (in liq) v McDermott (2006) 224 ALR 405; (2006) 56 ACSR 323; [2006] FCA 52 Singleton Earthmoving Equipment Hire Pty Ltd v Singleton Earthmoving Pty Ltd [2009] NSWSC 688 Sydlow Pty Ltd (in liq) v TG Kotselas Pty Ltd (1996) 65 FCR 234; (1996) 20 ACSR 47; (1996) 14 ACLC 846 Warner, Re GTL Tradeup Pty Ltd (in liq) (2015) 104 ACSR 633; [2015] FCA 323 Category: Principal judgment Parties: Australian Securities and Investments Commission (Plaintiff) Andrew Hugh Jenner Wily (First Defendant) David Anthony Hurst (Second Defendant) Representation: Counsel: A P Lo Surdo SC w J Shephard (Plaintiff) I M Jackman SC (First Defendant) I R Pike SC (Second Defendant)