application by liquidators for extension of time for the making of an application under s 588FF(1) of the Corporations Act 2001 (Cth)
where former liquidator had insufficient funding to pursue potential claims
where current liquidators only appointed around halfway through the 3 year period
Quick Take
1Where liquidators are appointed partway through the three-year limitation period under s 588FF(3)(a), have encountered inadequate books and records, lack of director cooperation, and insufficient funding, and have not unreasonably delayed their investigations, these factors collectively support a substantial extension of time for unidentified voidable transaction claims under s 588FF(3)(b).
2Where a liquidator seeks an extension of time under s 588FF(3)(b) to put themselves in a position to decide whether to bring proceedings, a preliminary inquiry into the merits of any consequential proceedings may not be necessary; even where such inquiry is undertaken, the objective construction of broad general words in a deed of release is not in itself sufficient to render unknown claims devoid of prospects, given the established principle that general words in a release are limited to what was specifically in the contemplation of the parties.
3A person given leave to be heard under r 2.13 of the Federal Court (Corporations) Rules 2000 (Cth) as an interested person ordinarily neither receives nor pays costs, and the general principle was not departed from where the interested party unsuccessfully opposed the extension application.
