McDermott and Potts in their capacities as joint and several liquidators Of Lonnex Pty Ltd (in liquidation) (Acn 097 786 751)

[2019] VSCA 23

Victorian Court of Appeal

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Corporations
2. › Liquidation
3. › Powers of liquidators
4. › Compromise of proceedings
5. › Application for directions under s 511 Corporations Act 2001 (Cth)
6. › Whether liquidators justified in compromising proceeding
7. › Relevance of creditors' views
8. › Relevance of absence of funding
9. › Role and adequacy of legal advice
10. › Corporations Act 2001 (Cth), ss 477(2B), 511
1. Corporations
2. › Liquidation
3. › Powers of liquidators
4. › Approval of long-term agreements
5. › Application under s 477(2B) Corporations Act 2001 (Cth)
6. › Relationship between ss 477(2B) and 511
7. › Whether separate reasons required for refusal of s 477(2B) application
8. › Corporations Act 2001 (Cth), s 477(2B)
1. Appeal
2. › Standard of appellate review
3. › Appeal from exercise of judicial discretion
4. › Whether discretion miscarried
5. › House v The King principles applied
6. › Whether associate judge acted on wrong principle or failed to take into account material consideration

Quick Take

Liquidators seeking court approval to compromise litigation should ensure that their legal opinion evaluates the overall prospects of success and the reasonableness of the proposed settlement amount, and should be aware that the absence of funding is not an overriding factor where creditors oppose the settlement and an alternative course of action is available.