The Court declined to appoint provisional liquidators to a company in administration but exercised the s 447A power to appoint special purpose administrators funded by the plaintiff creditor to investigate potential claims against the sole director and related parties, while leaving the existing administrators in place to manage the business. The Court held that wholly independent investigators were warranted where the potential claims targeted the director who appointed the administrators and who was the driving force behind the DOCA proposal, where the director and related parties had been recalcitrant in providing information, and where the administration had proceeded rapidly with limited time for proper assessment of claims. The Court emphasised that the DOCA proposal remained conditional and partly unconfirmed, and that the special purpose administrators would not be indemnified from the company's property, with the plaintiff providing $200,000 in funding.
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