CORPORATIONS - UNFAIR PREFERENCE - INSOLVENT TRADING - FLOATING CHARGE - PRIORITIES - STATUTORY INTERPRETATION - Liquidator threatens claim under s.588FA and s.588M for recovery of unfair preference and compensation for insolvent trading - compromise of claims - money paid under Deed of Settlement - whether fund recovered is property of company subject to floating charge - whether new s.588FF(1)(a) effects a change to pre-existing law.
HELD: Following SJP Formwork (Aust) Pty Ltd (in liq) v Deputy Commissioner of Taxation and not following Jonsson, Milner and Riaps Pty Ltd (in liq) v Tim Ferrier Pty Ltd, the new s.588FF(1)(a) does not effect a change to the pre-existing law; money recovered in exercise of a liquidator's statutory recovery rights under s.588FA and s.588M can never be property of a company subject to a floating charge.
Acts Cited:
Corporations Act 2001 (Cth) - Subdivision D of Division 6 of Part 5.6, s.9(b)(ii), s.588FA, s.588FF, s.588M
Case Details
Citation[2003] NSWSC 207
CourtNSWSC
JurisdictionNew South Wales
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