This proceeding was an application by a shareholder of a company seeking to have the Federal Court of Australia order an inquiry into the conduct of a receiver under s 423 of the Corporations Act 2001 (Cth). The applicants alleged that there was reason to believe that the receiver had committed various breaches of duty in the course of a complex receivership concerning a large property development. The Court dismissed the application because the receiver’s conduct was not shown to warrant an inquiry, and an inquiry was not in the public interest because the application ultimately sought primarily to vindicate private rights, which is not the proper concern of an inquiry under s 423.
Michael Hodge KC (leading A Psaltis) appeared for the applicants, instructed by Bartley Cohen.
Michael May (with McKenna KC) appeared for the respondents, instructed by Thynne + Macartney.
The judgment is published here.