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ARTICLE · 04 NOVEMBER 2017

Examinee on the run. What to do when a director fails to appear.

Corrs Chambers Westgarth
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Options available to liquidators when examinee fails to appear including option of adverse costs orders if examinee appeals.

AustraliaLitigation, Mediation & Arbitration

This week's TGIF article considers the decision of Mensink v Parbery [2017] FCA 1248 and the options available to liquidators when a director fails to appear for examination, and when liquidators are faced with an appeal by a director who is unlikely to comply with adverse costs orders.

WHAT HAPPENED?

In May 2016, Stephen Parbery and Michael Owen (Liquidators) were appointed as special purpose liquidators of Queensland Nickel Pty Limited to, among other things, investigate dealings between Queensland Nickel and its related entities.

On application by the Liquidators, the Court issued a summons pursuant to s596A of the Corporations Act 2001 (Cth) to Clive Mensink, the former director and company secretary of Queensland Nickel, to be examined about the company's affairs.

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