Tenants beware: HCA confirms broad scope of liquidators’ powers to disclaim leases under s.568 Corporations Act 2001 (Cth)

Willmott Growers Group Inc v Willmott Forests Ltd (Receivers and Managers appointed) (In Liquidation) [2013] HCA 51

Overview

Section 568 of the Corporations Act 2001 (Cth) (Act) gives liquidators broad powers to disclaim onerous property.

Until the High Court’s decision, it was unclear whether this power entitled a liquidator of an insolvent landlord to disclaim a lease, such that the solvent tenant no longer has any proprietary interest in the land.

Filed under:
Australia, Insolvency & Restructuring, Litigation, Real Estate, Herbert Smith Freehills LLP, Landlord, Leasehold estate, Liquidator (law), Corporations Act 2001 (Australia), Victoria Supreme Court, High Court of Australia
Authors:
Konrad de Kerloy
Location:
Australia
Firm:
Herbert Smith Freehills LLP