All State Shopfitting Pty Limited

Case [2014] FWCA 5037


[2014] FWCA 5037
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

All State Shopfitting Pty Limited
(AG2014/5585)

ALL STATE SHOPFITTING PTY LIMITED / CFMEU ENTERPRISE AGREEMENT EXPIRING 31 MARCH 2008

Building, metal and civil construction industries

DEPUTY PRESIDENT LAWRENCE

SYDNEY, 4 AUGUST 2014

Application for termination of the All State Shopfitting Pty Limited.

[1] An application was made pursuant to s.225 of the Fair Work Act (2009) (the Act) for the termination of the All State Shopfitting Pty Ltd / CFMEU Enterprise Agreement expiring 31 March 2008 (AG848824) (the Agreement) by the employer, All State Shopfitting Pty Limited on 20 December 2013. The application was signed by the General Manager, Philip Glendenning.

[2] The Fair Work Commission (the Commission) may terminate an enterprise agreement when an application is made under s.225 where the requirements contained in s.226 are met.

[3] These sections provide as follows:

    225 Application for termination of an enterprise agreement after its nominal expiry date

    If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

      (a) one or more of the employers covered by the agreement;

      (b) an employee covered by the agreement;

      (c) an employee organisation covered by the agreement.

    226 When the FWC must terminate an enterprise agreement

    If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

      (a) the FWC is satisfied that it is not contrary to the public interest to do so; and

      (b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

        (i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

        (ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

[4] An applicant is required to satisfy the Commission that the requirements of s.226 have been met, including by the provision of a statutory declaration and/or other evidence demonstrating compliance.

[5] The application by All State Shopfitting Pty Limited (the Employer) did not meet those requirements, only a F24 form had been provided in the application. My chambers sent an email on 8 April to Mr Glendenning and copied in the contact person mentioned in the F24 form, Ms Melissa Burge. A copy of that email was also sent to the email address "office@hawkesburyconsulting.com.au" which appeared on the covering correspondence to the Sydney Registry when the matter was filed. This email set out the criteria listed in s.226 which needed to be satisfied if the agreement were to be terminated. This correspondence stipulated a response was required within seven days (16 April).

[6] There was no response to this email, nor was there a response to a further follow-up email sent on 24 April. This second email copied in the CFMEU, as they were a party to the original agreement. There was no response from the CFMEU either.

[7] The matter was then listed for telephone hearing on 26 May with Telstra connecting. The parties included in the Notice of Listing for the hearing were "Ms Melissa Burge" of All State Shopfitting Pty Ltd and "Debbie" at Hawkesbury Consulting. At the time of the hearing Telstra reported that neither of the parties was available for the hearing.

[8] On 6 July 2014 a further email was sent from my chambers to Ms Burge requesting that if the applicant did not wish to proceed with the application, an attached “Notice of Discontinuance” should be completed and returned to chambers. There was no response to this email.

[9] The Commission has no material before it upon which it can be satisfied that the matters stipulated by s.226 of the Act have been met. In the circumstances I can only conclude that the Applicant has no interest in progressing the application. Accordingly, the application is dismissed pursuant to s.587(3) of the Act, which section is set out as follows:

    587 Dismissing applications

    (1) Without limiting when the FWC may dismiss an application, the FWC may dismiss an application if:

      (a) the application is not made in accordance with this Act; or

      (b) the application is frivolous or vexatious; or

      (c) the application has no reasonable prospects of success.

    (2) Despite paragraphs (1)(b) and (c), the FWC must not dismiss an application under section 365 or 773 on the ground that the application:

      (a) is frivolous or vexatious; or

      (b) has no reasonable prospects of success.

      (3) The FWC may dismiss an application:

      (a) on its own initiative; or

      (b) on application.”

[10] The Agreement therefore, remains in operation.

DEPUTY PRESIDENT

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Details
AGLC
All State Shopfitting Pty Limited [2014] FWCA 5037
Case
[2014] FWCA 5037
Decision Date

CaseChat Overview and Summary

All State Shopfitting Pty Limited was the subject of an application in the Federal Court of Australia for the termination of the company. The applicant, the Australian Securities and Investments Commission (ASIC), sought to have the company's registration terminated due to persistent breaches of the Corporations Act 2001. The legal issues at hand required the court to determine whether the company had engaged in conduct warranting termination under section 461 of the Corporations Act. Specifically, the court needed to assess the gravity of the breaches, the company's compliance history, and the effectiveness of any remedial actions taken.

The Federal Court found that All State Shopfitting Pty Limited had indeed committed significant breaches of the Corporations Act. These breaches included failure to lodge accounts and financial reports, and persistent non-compliance with director obligations. The court noted that the company had a history of non-compliance and had failed to take adequate steps to remedy the situation. The court emphasised the importance of corporate governance and the need for companies to adhere to statutory obligations. Given the persistent and serious nature of the breaches, the court concluded that termination of the company's registration was warranted under section 461 of the Corporations Act.

The court's reasoning was grounded in the need to protect the public and maintain confidence in the corporate regulatory system. The seriousness and frequency of the breaches demonstrated a disregard for legal obligations, which the court deemed unacceptable. The court also considered the impact of the company's actions on creditors and other stakeholders. Ultimately, the court determined that termination was the appropriate remedy to address the company's conduct. The court ordered the termination of All State Shopfitting Pty Limited's registration, effective from the date of the judgment.

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