Octaviar: Application for Special Leave to Appeal to High Court Granted

Our Alert of 16 October 2009 discussed the application for special leave to the High Court in respect of the Queensland Court of Appeal's judgement in Re Octaviar Ltd (No 7) [2009] QCA 282. This was the appeal from the decision of Re Octaviar Ltd; Re Octaviar Administration Pty Ltd [2009] QSC 37.

A summary of what has happened so far

• The Octaviar case considered a registrable charge under the Corporations Act 2001 (Corporations Act) which secured all money owing under defined "Transaction Documents". By designating a new document as a "Transaction Document" the money secured under the charge was increased.
• At first instance, the Queensland Supreme Court held that this was a "variation" of the charge, and as such a failure to notify ASIC within the prescribed period under Chapter 2K of the Corporations Act rendered the charge void to the extent that it secured any increased liability.