RE THE BELL GROUP LTD (in liq) ACN 008 666 993 and certain of its subsidiaries as listed in the schedule to the originating process; EX PARTE WOODINGS as liquidator of THE BELL GROUP LTD (in liq) ACN 008 666 993 and as liquidator or provisional liquidator of certain of its subsidiaries as listed in the schedule to the originating process

[2009] WASC 235

Supreme Court of Western Australia

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Interrogate

Catchwords

1. Corporations
2. › Winding up
3. › Powers of liquidator
4. › Exercise and control of liquidator's powers
5. › Application for directions under s 479(3)
6. › Whether liquidator acting reasonably in proposed trust and charge arrangements to preserve judgment sum pending appeal
7. › Corporations Act 2001 (Cth), ss 477, 477(2B), 479(3)
1. Corporations
2. › Winding up
3. › Powers of liquidator
4. › Long-term agreements
5. › Approval under s 477(2B)
6. › Role of court in granting or denying approval
7. › Whether court should endorse or merely permit liquidator's commercial judgment
8. › Corporations Act 2001 (Cth), s 477(2B)
1. Corporations
2. › Winding up
3. › Powers of liquidator
4. › Charges granted by liquidator
5. › Priority over s 556(1) claims
6. › Whether charges in favour of judgment debtors appropriate to secure restitutionary entitlement on appeal
7. › Corporations Act 2001 (Cth), ss 477(2B), 485(3), 556(1)
1. Practice and Procedure
2. › Ex parte applications
3. › Confidentiality orders
4. › Whether public knowledge likely to defeat paramount object of doing justice
5. › Obligation of disclosure on ex parte application

Quick Take

A liquidator may properly enter into trust, undertaking and charge arrangements to preserve judgment sums pending appeal by judgment debtors, including granting charges in favour of judgment debtors to secure restitutionary entitlements in priority to s 556(1) claims, where the property has come into the winding up as a result of the judgment under appeal. The court's role on such applications is limited to reviewing the liquidator's proposal for good faith, absence of error of law, and prudence — not to develop alternative proposals or determine disputes between the liquidator and third parties.