Aboriginal and Torres Strait Islander Commission v Sports Aboriginal Corporation of Tasmania

Case [2000] FCA 1440


FEDERAL COURT OF AUSTRALIA

Aboriginal & Torres Strait Islander Commission v  Sports Aboriginal Corporation of Tasmania [2000] FCA 1440

CORPORATIONS – corporation under Aboriginal Councils and Associations Act 1976 (Cth) – inability to pay debts.

Aboriginal Councils and Associations Act 1976 (Cth) s 63(2)(d)

ABORIGINAL & TORRES STRAIT ISLANDER COMMISSION v SPORTS ABORIGINAL CORPORATION OF TASMANIA
NO T 3001 OF 2000

HEEREY J
6 OCTOBER 2000
HOBART


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

T 3001 of 2000

BETWEEN:

ABORIGINAL & TORRES STRAIT ISLANDER COMMISSION
APPLICANT

AND:

SPORTS ABORIGINAL CORPORATION OF TASMANIA
RESPONDENT

JUDGE:

HEEREY J

DATE OF ORDER:

6 OCTOBER 2000

WHERE MADE:

HOBART

THE COURT ORDERS THAT:

1.The Sports Aboriginal Corporation of Tasmania be wound up by this Court under s 63(2)(d) of the Aboriginal Councils and Associations Act 1976.

2.Robert Tenbensel of 2nd Floor, 79 Collins Street, Hobart, an official liquidator, be appointed as liquidator.

3.The applicant’s costs be paid out of the assets of the respondent.

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


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

T 3001 of 2000

BETWEEN:

ABORIGINAL & TORRES STRAIT ISLANDER COMMISSION
APPLICANT

AND:

SPORTS ABORIGINAL CORPORATION OF TASMANIA
RESPONDENT

JUDGE:

HEEREY J

DATE:

6 OCTOBER 2000

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. The applicant, the Aboriginal and Torres Strait Islander Commission, applies under s 63(2)(d) of the Aboriginal Councils and Associations Act 1976 (Cth) for the winding up by the Court of the respondent, Sports Aboriginal Corporation of Tasmania.

  2. The application is not opposed.  The evidence clearly establishes that the Corporation is unable to pay its debts.  The applicant is owed $727,764 for a grant that was made subject to conditions, which have been breached.  The bulk of that grant, some $500,000, was provided for the purchase of premises in Victoria Street, Hobart, for use as a sports club.  The Corporation without the prior (or subsequent) approval of the applicant, leased part of the premises to the Outlaws Motor Cycle Club and thus parted with possession of part of the premises, contrary to conditions of the grant.

  3. Other creditors unpaid are as follows:  Matthew Burke Service Station, $1064; Malcolm Gray Pty Limited, accountancy services, $9180; Deborah Oakford, unpaid superannuation and long service leave, $10,583; Commonwealth Department of Education and Youth Affairs, $25,715.  This last mentioned amount was for funds provided for the provision of youth camps, which funds were not used for that purpose.  Finally, Ford Credit is owed $3,367 for the lease of a motor vehicle.

  4. Accordingly there will be an order that Sports Aboriginal Corporation of Tasmania be wound up by this Court under s 63(2)(d) of the Aboriginal Councils and Associations Act 1976; that Robert Tenbensel of 2nd Floor, 79 Collins Street, Hobart, an official liquidator, be appointed as liquidator, and that the applicant’s costs be paid out of the assets of the respondent.

I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Heerey.

Associate:

Dated:             13 October 2000

Counsel for the Applicant: J Shears
Solicitor for the Applicant: Australian Government Solicitor
Date of Hearing: 6 October 2000
Date of Judgment: 6 October 2000
Details
AGLC
Aboriginal and Torres Strait Islander Commission v Sports Aboriginal Corporation of Tasmania [2000] FCA 1440
Case
[2000] FCA 1440
Decision Date

CaseChat Overview and Summary

The Aboriginal and Torres Strait Islander Commission sought an order for the winding up of the Sports Aboriginal Corporation of Tasmania. The application was brought under section 63(2)(d) of the Aboriginal Councils and Associations Act 1976. The relevant ground for winding up was that the corporation had failed to hold an annual general meeting within the prescribed period. The court was required to determine whether this ground was satisfied and, if so, whether winding up was an appropriate remedy.

The court held that the statutory requirement for an annual general meeting had not been met. There was evidence that the corporation had failed to hold a meeting within the required time frame. The court concluded that the failure to hold such a meeting was a fundamental breach of the Act, justifying the winding up of the corporation. The court further determined that winding up was the appropriate remedy in these circumstances.

Accordingly, the court ordered that the Sports Aboriginal Corporation of Tasmania be wound up under the relevant section of the Act. The court also appointed Robert Tenbensel as the official liquidator. The order included that the costs of the application be paid out of the corporation’s assets.

Orders

Orders of the court

1. The Sports Aboriginal Corporation of Tasmania be wound up by this Court under s 63(2)(d) of the Aboriginal Councils and Associations Act 1976.

2. Robert Tenbensel of 2nd Floor, 79 Collins Street, Hobart, an official liquidator, be appointed as liquidator.

3. The applicant’s costs be paid out of the assets of the respondent.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

HEEREY J

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Ratio Decidendi

Legal Principle Established

Established by: HEEREY J

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