FEDERAL COURT OF AUSTRALIA

In the matter of C & D Global Protection Pty Ltd (Administrator Appointed) ACN 104 649 167 [2007] FCA 2063

IN THE MATTER OF C & D GLOBAL PROTECTION PTY LTD (ADMINISTRATOR APPOINTED) ACN 104 649 167;  DEPUTY COMMISSIONER OF TAXATION v C & D GLOBAL PROTECTION PTY LTD ACN 104 649 167 AND OH MY PTY LTD ACN 117 619 495 T/A HERVEY BAY SECURITY

QUD 323 OF 2007

DOWSETT J

14 DECEMBER 2007

BRISBANE

IN THE MATTER OF C & D GLOBAL PROTECTION PTY LTD (ADMINISTRATOR APPOINTED) ACN 104 649 167

THE COURT ORDERS THAT:

1.                  C & D Global Protection Pty Ltd (administrator appointed) ACN 104 649 167 be wound up in insolvency under the provisions of the Corporations Act 2001 (Cth);

2.                  Julie Ann Williams be appointed liquidator for the purposes of the said winding up;

3.                  The plaintiff’s costs of and incidental to the application be costs in the winding up.  Such costs take priority in accordance with s 556(1)(b) of the Act.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE MATTER OF C & D GLOBAL PROTECTION PTY LTD (ADMINISTRATOR APPOINTED) ACN 104 649 167

REASONS FOR JUDGMENT

1                     Prior to the appointment of the administrator, the affairs of this company were being conducted in a way which was calculated to create suspicion about its management.  In particular, with knowledge of the Commissioner’s debt and of threatened winding up proceedings, the assets of the company were transferred in a transaction which appears not to have been at arm’s length. 

2                     I do not mean to cast doubt upon the character or professional competence of the administrator of the company, nor upon his conduct in connection with the administration.  However he was appointed by the directors.  In the circumstances, and given the likelihood that there will be a substantial investigation into the management of the company, the Commissioner’s preference for a liquidator other than the administrator is reasonable.  In those circumstances it is better that the Commissioner’s nominee be appointed liquidator.

3                     I order that C & D Global Protection Pty Ltd ACN104649167 (administrator appointed) be wound up in insolvency under the provisions of the Corporations Act 2001 (Cth) (the “Act”).  I order that Julie Ann Williams be appointed liquidator for the purposes of the said winding up.  I order that the plaintiff’s costs of and incidental to the application be costs in the winding up, and that such costs take priority in accordance with s 556(1)(b) of the Act. 

Associate:

Dated:         21 December 2007