Cannane, Andrew Vincent & Anor v Official Trustee in Bankruptcy as Trustee of the bankrupt estate of John Vincent Cannane Cannane, Denise Mary & Anor v J Cannane Pty Ltd (in liq) & Anor

The appeals, brought by Andrew and Denise Cannane, challenge a judgment of Tamberlin J that transfers of shares by John Cannane to them were void under section 121 of the Bankruptcy Act 1966. The respondents, the Official Trustee in Bankruptcy and the liquidator of J Cannane Pty Limited, sought to have the transfers set aside as dispositions made with intent to defraud creditors. Beaumont and Hill JJ dismissed the appeals, finding the transfers were void under s 121. Lehane J would have allowed the appeals, concluding the transfers were not made with intent to defraud creditors. The majority held that the shares had no value and that the transfers were not settlements within s 120. The majority also held that neither Denise nor Andrew was a purchaser in good faith. The majority rejected the respondents' contention that a disposition for full consideration could not be void under s 121. They concluded that the question whether a disposition falls within s 121 must be determined by examining all the circumstances of the case. They found the necessary intent to defraud creditors existed because John Cannane admitted the predominant object of the transfers was to put the shares beyond the reach of creditors. Lehane J would have allowed the appeals, holding that the transfers were not made with intent to defraud creditors. He accepted that the transfers were dispositions of property but rejected the proposition that the intent to place the shares beyond the reach of creditors converted the transfers into dispositions with intent to defraud.