Walker v Midlink Nominees Pty Ltd (Provisional Liquidator Appointed) & Ors

(2001) 22 WAR 318; [2000] WASC 112

Supreme Court of Western Australia

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Interrogate

Catchwords

1. Corporations
2. › External administration
3. › Voluntary administration
4. › Appointment of administrator under s 436A
5. › Whether company may appoint administrator after appointment of provisional liquidator
6. › Whether director's resolution and execution of appointment an exercise of function or power of office
7. › Corporations Law, ss 436A, 437C, 440A, 471A
1. Corporations
2. › External administration
3. › Provisional liquidator
4. › Effect of appointment on powers of directors
5. › Whether residual powers of directors survive s 471A(2)
6. › Corporations Law, s 471A(2)
1. Practice and Procedure
2. › Precedent
3. › Decisions of courts of co-ordinate jurisdiction
4. › Whether judge at first instance bound to follow decision of judge of co-ordinate jurisdiction on uniform national legislation

Quick Take

A company cannot, through its directors, appoint a voluntary administrator under s 436A of the Corporations Law after a provisional liquidator has been appointed by the Court. The directors' remedy is to seek the approval of the provisional liquidator or the Court under s 471A(2)(c) or (d). This conflicts with the Federal Court decision in Object Design Inc v Object Design Australia Pty Ltd (1997) 78 FCR 60, which held the contrary.