Directors

Receivers fail to persuade appointment was valid

Hamilton Murphy’s Stephen Dixon. Liquidator Ahmed Bise. Invalidity of appointment, inadequate attention to Consumer Credit codes, trespass even. Two recent judgments of Supreme Court of Victoria judge Peter Riordan show why it is wise to know one’s appointor, and even wiser to verify their security. Stephen Dixon and Ahmed Bise, the unfortunate pair in this salutary tale were, at the time of their first appointment…


Solvency reports excoriated as funder stung for costs

Cor Cordis partner Andre Lakomy. A falling out between Sydney lender Graham Werry and notorious Kiwi businessman Mark Bryers has led a judge to mete out more punishment to litigation funders, and for good measure she’s also torn strips off a certain liquidator’s solvency reports. In the matter of Wetherill Park Holdings Pty Ltd (No 2) [2021] NSWSC 1397 NSW Supreme Court judge Kelly Rees…


Phoenix taint not to authorities’ taste

Cor Cordis partner Jason Tang. If you’re an administrator wanting the hearing of a winding up application adjourned so you can complete your report and convene a second meeting, Federal Court judge Angus Stewart ain’t your man. His honour, who iNO readers will recall presided over the the Commissioner of Taxation’s (CoT) model throttling of now ex-liquidator David Iannuzzi, pays close attention to the authorities….


“Imprudent refusal” earns indemnity costs

Hall Chadwick partner Blair Pleash. An “imprudent” decision to refuse a Calderbank Offer has rebounded on Hall Chadwick partner Blair Pleash, who’s been ordered to pay a hefty costs order on an indemnity basis for the period from February 2020 to April 2021. “They further contended that the lack of response to the offer on the part of the plaintiffs was an “imprudent refusal of…


ASIC, receivers sweating on bitcoin deadline

KPMG partner John Lindholm. Today’s the day for Heidi Elizabeth Walters and Aryn Henry Hala, the former director and director respectively of A One Multi Services Pty Ltd (A One). By 5pm Australian Eastern Standard Time (AEST) the pair, both 40 of Redbank Plains in Queensland, must either surrender access to their bitcoin accounts or breach orders of the Federal Court. The only alternative –…


ASIC crashes SMSF crypto party

KPMG’s Tim Michael. KPMG partner John Lindholm. Gold Coast solicitor Chris Nyst could have the makings of a momentous new novel at his fingertips following ASIC’s ex-parte application for orders freezing the assets and confining to the jurisdiction Heidi Elizabeth Walters and Aryn Henry Hala. “The significant difficulty for ASIC is that, by its nature, cryptocurrency is easily transferred and moved about. Moreover, it can…


Director’s novel re-examination bid

McGrathNicol’s Rob Kirman. There can’t be too many liquidators who, having completed a public examination of a director, learn that the examinee has decided he’d like to more time in the witness box. And not just more time. More time to be asked the right questions by his own counsel in fact, and more time to provide answers that are somehow preferable to the answers…


Winding up stayed but priority spoils the party

Deloitte partner Robert Woods. Cor Cordis partner Daniel Juratowitch. iNO has rarely read a decision where so many irregularities have been forgiven on the way to ruling in favour of an appellant seeking to terminate a winding up. Yet in Re The Thoroughbred Consultants Pty Ltd [2021] VSC 627 we have detailed reasons why Supreme Court of Victoria judge Michael Osborne decided that a winding…


Settlement of contempt by SPL no barrier to courts

Kroll special advisor Steve Parbery. You couldn’t make it up. A mining magnate’s nephew on the run in Eastern Europe, in contempt of court for failing to show for public examination by a special purpose liquidator (SPL), the SPL settling the contempt case; and the courts then stepping in to pursue it. ” … on about 6 June 2016, Mr Mensink departed Australia for a…


Judge invites Forum liquidators to fly Papas home

McGrathNicol partner Jason Ireland. Funding and freezing orders were to the fore yesterday as lawyers for Westpac and alleged fraudsters Bill Papas and Vincenzo Tesoriero returned to the fray before Federal Court judge Michael Lee. “I’d be interested to hear from the liquidator and if the only obstacle is purchasing a ticket then I would’ve thought that the liquidator would want him back but the…