In the matter of Substance Technologies Pty Ltd [2019] NSWSC 612

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Substance Technologies Pty Ltd [2019] NSWSC 612 Hearing dates: 17 May 2019 Decision date: 24 May 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Orders for compensation by directors for insolvent trading pursuant to s 588M of the Corporations Act 2001 (Cth): see [80]. Catchwords: CORPORATIONS — Winding up — Trading whilst insolvent — Action against directors for compensation under s 588M of the Corporations Act 2001 (Cth) — Whether presumption of insolvency arises for failure to keep proper books and records — Whether privilege against self-incrimination is defence to non-compliance with s 530A — Privilege against self-incrimination and s 588E — Whether actual insolvency — Compensation where successive directors — Whether directors should be jointly liable for debts incurred during directorship of former directors — Assessment of compensation according to when debts incurred. Legislation Cited: Bankruptcy Act 1966 (Cth) Civil Procedure Act 2005 (NSW), s 100 Corporations Act 2001 (Cth), ss 9, 286, 530A, 530A, 588E, 588G, 588H, 588M, 1317H, 1317S Electricity Network Assets (Authorised Transactions) Act 2015 (NSW) Income Tax Assessment Act 1997 (Cth) Trade Practices Act 1974 (Cth), s 82 Cases Cited: Australian Securities and Investments Commission v Cassimatis (No 8) (2016) 336 ALR 209; [2016] FCA 1023 Australian Securities and Investments Commission v Edwards (2005) 54 ACSR 583; [2005] NSWSC 831 Australian Securities and Investments Commission v Plymin (No 1) (2003) 46 ACSR 126; [2003] VSC 123 Bans Pty Ltd v Ling (1995) 16 ACSR 404 Blatch v Archer (1774) 1 Cowp 63; (1774) 98 ER 969 Dartberg Pty Ltd v Wealthcare Financial Planning Pty Ltd (2007) 164 FCR 450; [2007] FCA 1216 Dolan v Australian and Overseas Telecommunications Corporation (1993) 42 FCR 206; (1993) 114 ALR 231 Edenden v Bignell [2007] NSWSC 1122 Elliott v Australian Securities and Investments Commission (2004) 10 VR 369; [2004] VSCA 54 Griffin v Pantzer (as trustee of the bankrupt estate of Griffin) (2004) 137 FCR 209; [2004] FCAFC 113 Ho v Powell (2001) 51 NSWLR 572; [2001] NSWCA 168 I&L Securities Pty Ltd v HWT Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109; [2002] HCA 41 In the matter of Salfa Pty Limited (in liquidation) [2014] NSWSC 1493 In the matter of Solar Shop Australia Pty Ltd [2017] FCA 1219 In the matter of Swan Services Pty Limited (in Liquidation) [2016] NSWSC 1724 Jones v Dunkel (1959) 101 CLR 298 McLellan, Re Stake Man Pty Ltd v Carroll (2009) 76 ACSR 67; [2009] FCA 1415 Re New World Alliance Pty Limited (receiver and manager appointed) (1993) 47 FCR 90; (1993) 12 ACSR 299 Refrigerated Express Lines (Australasia) Pty Limited v Australian Meat and Live-Stock Corporation (1979) 42 FLR 204; (1979) ATPR 40-137 Smith (in his capacity as liquidator of ACN 002 864 002 Pty Ltd (in liq) (formerly known as Petrolink Pty Ltd)) v Boné (2015) 104 ACSR 528; [2015] FCA 319 Standard Chartered Bank of Australia Ltd v Antico (1993) 36 NSWLR 87 Standard Chartered Bank of Australia Ltd v Antico (No 1) (1995) 38 NSWLR 290; (1995) 18 ACSR 1 Trinick (as liquidator of Forfione Family Group Pty Ltd (ACN 009 363 464)(in liq) v Forgione (2015) 106 ACSR 600; [2015] FCA 642 Woodgate v David (2002) 55 NSWLR 222; [2002] NSWSC 616 Texts Cited: Fleming's The Law of Torts (10th ed., Lawbook Co., 2011) Sir William Blackstone, Commentaries on the Laws of England (1753) (Oxford University Press, 2016) Category: Principal judgment Parties: Robert Whitton in his capacity as Liquidator of Substance Technologies Pty Ltd (in liquidation) (Applicant) Andrew Thaler (First Respondent) Christopher Thaler (Second Respondent) Representation: Counsel: P Reynolds (Applicant) Solicitors: Bartier Perry (Applicant)