A matter in which administrators appointed to numerous individual companies operating as a larger corporate group sought directions and other relief from the Court on certain issues affecting the administration.
Directions were sought under s 447D of the Corporations Act 2001 (Cth) as to whether the administrators were justified and acting properly and reasonably in extending loans from certain companies within the Group to other companies within the group for the purposes of funding the operation of the borrowing companies during the administration period. Another issue regarded the limits of personal liability of the administrators arising from the continuation of the inter-company loans. An order limiting the administrators’ personal liability under s 443A of the Corporations Act 2001 (Cth) was also obtained under s 447A of the Corporations Act 2001 (Cth), together with an order extending the time for the giving of a notice under s 443B(3) of the Corporations Act 2001 (Cth).
David Chesterman was counsel for the plaintiffs and instructed by Bennett & Philp.
The judgment is available here.