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ARTICLE · 01 MARCH 2017

Liquidators vindicated in refusing to conduct public examinations using a creditors law firm

Corrs Chambers Westgarth
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The decision provides comfort to liquidators that they will be justified in refusing to conduct certain examinations.

AustraliaInsolvency/Bankruptcy/Re-Structuring
David Abernethy
David Abernethy
Jason Salman
Jason Salman
Kirsty Sutherland
Kirsty Sutherland
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This week's TGIF considers In the matter of ACN 151 726 224 Pty Ltd (in liq) [2016] NSWSC 1801, where the Court dismissed a creditor's application to remove liquidators who had refused to conduct public examinations of a director.

WHAT HAPPENED?

On 18 November 2015, the District Court of New South Wales entered judgment against Ridley Capital Holdings Pty Limited (the Company) in the amount of $660,862.62.

Two days after the judgment, liquidators were appointed to the Company in a creditors' voluntary winding up. The judgment creditor (the Creditor) submitted an informal proof of debt in the winding up of the Company.

At the first meeting of creditors, the liquidators' disclosed that the Company did not own any property, held two bank accounts with a balance of $956.36 and, as such, it was not anticipated that a dividend to creditors would be paid.

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