Reported Decision:
(2003) 46 ACSR 729
Supreme Court
CITATION: Apple Computer v Wily [2003] NSWSC 719 revised - 2/09/2003 HEARING DATE(S): 14/07/03, 15/07/03, 16/07/03 JUDGMENT DATE:
12 August 2003JURISDICTION:
Equity Division
Corporations ListJUDGMENT OF: Barrett J DECISION: Applications for orders removing liquidator, directing inquiry into his conduct and setting aside examination summonses dismissed. Application for order restricting documents to be produced adjourned. CATCHWORDS: CORPORATIONS - winding up - application for order removing liquidator or directing inquiry into his conduct - alleged partisanship of liquidator - alleged failure to cooperate with major creditor - alleged lack of independent decision making - whether examination summonses should be set aside or confined LEGISLATION CITED: Corporations Act 2001 (Cth), ss.473(1), 536
Supreme Court Rules, Pt 36 r 12CASES CITED: Re Adam Eyton Ltd; Ex parte Charlesworth (1887) 36 ChD 299
Re Biposo Pty Ltd (1995) 17 ACSR 730
Domino Hire Pty Ltd v Pioneer Park Pty Ltd [2003] NSWSC 496
Re Excel Finance Corp Ltd; Application of England (1993) 10 ACSR 255 at 282
Macpherson v Sherman (in his capacity as Deed Administrator of Agriculture.com Pty Ltd) [2001] NSWSC 628PARTIES :
Apple Computer Australia Pty Ltd - Plaintiff
Andrew Hugh Jenner Wily - First Defendant
Buzzle Operations Pty Ltd (Receivers Appointed) (In Liquidation) - Second DefendantFILE NUMBER(S): SC 2698/02 COUNSEL: Mr C.R.C. Newlinds - Plaintiff
Mr M.R. Aldridge SC - DefendantsSOLICITORS: Clayton Utz - Plaintiff
MBP Legal, McCrohon Bergseng Partners - Defendants
IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
CORPORATIONS LIST
BARRETT J
TUESDAY, 12 AUGUST 2003
2698/02 – APPLE COMPUTER AUSTRALIA PTY LIMITED v ANDREW HUGH JENNER WILY & ANOR
JUDGMENT
Background
1 The first defendant, Mr Wily, was, by order made on 15 February 2002, appointed liquidator of the second defendant, Buzzle Operations Pty Limited (“Buzzle”), having previously been appointed provisionally on 19 December 2001. On 26 March 2002, there were issued, upon Mr Wily’s application, certain examination summonses under Division 1 of Part 5.9 of the Corporations Act 2001 (Cth) and certain orders for the production of documents (Supreme Court Rules, Pt 36 r 12). The summonses were directed to nine persons, of whom six are employees of the plaintiff, Apple Computer Australia Pty Ltd (“Apple”). The order for production was directed to Apple.
2 By an originating process filed on 14 May 2002, Apple seeks:
(a) an order that Mr Wily be removed as liquidator of Buzzle (paragraph 7);
(b) an order that an inquiry be held pursuant to s.536 of the Corporations Act with respect to the conduct of Mr Wily in connection with the performance of his duties as liquidator of Buzzle (paragraph 6);
(d) an order setting aside those examination summonses and the order for production (paragraphs 4 and 2).(c) an order reversing or modifying Mr Wily’s decision to obtain the issue of the examination summonses in respect of the six Apple employees and the order for production directed to Apple (paragraph 5);
3 The first contention…
Continue reading Apple Computer Australia Pty Ltd v Wily
Sign in free to access the full text
- AGLC
- Apple Computer Australia Pty Ltd v Wily [2003] NSWSC 719
- Case
- [2003] NSWSC 719
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the liquidator's conduct warranted his removal or an inquiry into his actions. The applicant argued that the liquidator's actions were detrimental to the company's interests and that he had not acted in an independent and impartial manner. The court had to consider the evidence presented regarding the liquidator's conduct and determine whether it justified the extreme measures sought by the applicant.
In examining the liquidator's conduct, the court found that there was insufficient evidence to support the applicant's allegations. The court held that the liquidator had not displayed partisanship or acted in a manner that warranted an inquiry into his conduct. The evidence did not support the claims that the liquidator had failed to cooperate with a major creditor or lacked independent decision-making. The court determined that the liquidator's actions were within the bounds of his duties and responsibilities. Consequently, the court dismissed the application and held that the examination summonses should not be set aside or confined.
The court's final orders were that the applicant's application be dismissed, and the examination summonses issued by the applicant were to remain in place. The liquidator was not to be removed from his position, and no inquiry was to be directed into his conduct. The court emphasised the importance of the independence and impartiality of liquidators and upheld the presumption of their integrity. The decision underscored the high threshold required to justify an inquiry into or removal of a liquidator.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.