Creditors cannot set-off unsecured debts against unfair preference claims. What about other voidable transactions?
For some time, controversy has surrounded the question as to whether unsecured creditors of an insolvent company can utilise set-off under s 553C of the Corporations Act 2001 (Cth) (Act) against unfair preference claims. In the recent decision of Morton as Liquidator of MJ Woodman Electrical Contractors Pty Ltd v Metal Manufacturers Pty Limited [2021] FCAFC 228 (MJ Woodman), the court made …
High Court clarifies the scope of public examinations and extends the range of ‘eligible applicants’
In Walton v ACN 004 410 833 Limited (formerly Arrium Limited) (in liquidation) [2022] HCA 3, the High Court extended the purpose for which, and incidentally parties by whom, public examinations may be used. This decision will be welcomed by shareholders, litigation funders and class action promoters, who may be able to conduct detailed investigations of directors, …