Proceeds of most statutory recovery actions available to liquidators (including under ss 542, 565, 588FF, 588M, 598, 1317HD and 423 of the Corporations Law) constitute property of the company disposable under s 477(2)(c), but proceeds of claims under s 565 of the Companies Code (where the liquidator sues on behalf of creditors) do not. A liquidator need not obtain creditor approval before entering a litigation funding arrangement where significant creditors are defendants to the proposed action. The tort of champerty is not committed in Queensland merely by prosecuting proceedings there pursuant to a funding agreement lawfully entered into in a jurisdiction where the tort has been abolished.
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