Introduction

The decision of ICC Judge Barber in the case of Stephen Hunt & System Building Services Group Limited -v- Brian Michie & System Building Services Group Limited [2020] EWHC 54 (Ch) was recently handed down and it is an interesting decision about directors’ duties post the appointment of an administrator or liquidator.

Facts

The facts are quite involved and matter specific, and gave rise to a number of issues, but for present purposes the key issues are as follows.

Pension Schemes Bill – Additional hurdle for English law restructurings?

The intention was that the Pension Schemes Bill would enhance the Pensions Regulator’s powers to respond earlier when employers fail to take their pension responsibilities seriously, targeting “reckless bosses who plunder people’s pension pots”. However, the new criminal offences proposed as part of the Bill may inadvertently create additional hurdles for English law restructurings, making them potentially more expensive and difficult.

This week’s edition of TGIF considers the landmark decision of the High Court in BMW Australia Ltd v Brewster; Westpac Banking Corporation v Lenthall[2019] HCA 45 and what it might mean for insolvency practitioners.

Decision

This week’s TGIF considers the latest decision in Arrium and the recent refusal by the Supreme Court of New South Wales to set aside, on Arrium’s application, a summons for examination to a former director.

What happened?

On 15 May 2019, a Registrar issued a summons for examination and orders for production to a former director of Arrium following an application by two shareholders of the company. The shareholders had been authorised as eligible applicants by the ASIC the previous year.

This week’s TGIF considers the decision in Adelaide Brighton Cement Limited v Concrete Supply Pty Ltd (Subject to Deed of Company Arrangement) (No 4)[2019] FCA 1846, where the Court terminated a deed of company arrangement in circumstances where the administrators had not undertaken sufficient investigations.

Background

On 4 November 2017, administrators were appointed to Concrete Supply Pty Ltd.

Background

The aim of the compensation order regime, to make directors financially account for the consequences of their unfit conduct, applies to directors’ conduct after 1 October 2015 and gives the Secretary of State (“SoS”) the power to apply for a compensation order against a director who is either subject to a disqualification order or who has given a disqualification undertaking and the conduct of that person has caused loss to one or more creditors of the insolvent company.

This week’s TGIF considers a recent application by a liquidator to the NSW Supreme Court for directions regarding the sale of trust property where the trust deed could not be found.

Background

This week’s TGIF considers a recent Federal Court decision where the Court found a company’s general purpose liquidators had not acted unreasonably in opposing an application that special purpose liquidators also be appointed.

Background

This week’s TGIF considers a recent decision of the Supreme Court of Western Australia regarding an application for a company to be wound up under s 459P of the Corporations Act or, alternatively, on just and equitable grounds.

What happened?

This week’s TGIF considers the decision in Dudley (Liquidator) v RGH Construction Fitout & Maintenance Pty Ltd (No 2) [2019] FCA 1355, where the Court exercised its discretion to cure a procedural irregularity in a mothership proceeding.