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ARTICLE · 14 APRIL 2021

Balancing act: private examination allowed due to pending criminal proceedings

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Discusses application to FC for the private hearing of a public examination where separate criminal proceedings were on foot.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Cameron Cheetham
Cameron Cheetham
Mark Wilks
Mark Wilks
Craig Ensor
Craig Ensor
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This week's TGIF considers an application to the Federal Court for the private hearing of a public examination where separate criminal proceedings were also on foot.

Key takeaways

  • Public examinations under the Corporations Act may be held in private where 'special circumstances' can be shown.
  • Ongoing or pending criminal proceedings may constitute special circumstances.
  • The Court will balance the interests of the corporation with both those of the examinee and the wider public interest.

What happened?

Christian Sprowles was appointed liquidator of CWCN Pty Ltd (in liquidation) on 4 March 2020. As part of his investigation into the company's affairs, Mr Sprowles sought examination of a Mr Lindsay Kirschberg. Mr Kirschberg is a director of Adelphi Finance Pty Ltd, a company which had significant business dealings with CWCN. A summons was issued to Mr Kirschberg in late 2020.

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