Dudley, in the matter of Manamy Pty Ltd v Deputy Commissioner of Taxation

Gregory Bruce Dudley applied to the Federal Court for leave to resign as liquidator of Manamy Pty Ltd, and for an order that Jennifer Elizabeth Low be appointed in his place. Mr Dudley had been appointed liquidator of Manamy by the Court on 19 August 2015. However, Mr Dudley subsequently became aware of a conflict of interest that arose from prior involvement of his firm, RSM Bird Cameron, with Manamy. Mr Dudley considered it no longer appropriate for him or any member of RSM Bird Cameron to retain his appointment as liquidator of Manamy. The Deputy Commissioner of Taxation, who filed a notice of appearance indicating it neither consented nor opposed the application, did not file submissions.

The court was required to decide whether Mr Dudley should be permitted to resign, and if so, whether Ms Low should be appointed as his replacement. The court noted that liquidators are required to maintain high standards of independence and impartiality in relation to the company in liquidation, its directors, and its shareholders. Despite Mr Dudley’s inquiries prior to consenting to be appointed, he had inadvertently failed to realise he had a potential or actual conflict of interest with Manamy. Therefore, it was appropriate for Mr Dudley to resign as liquidator of Manamy. Further, pursuant to s 473(7) of the Corporations Act, it was appropriate that the vacancy in the office of the liquidator appointed by the Court, on Mr Dudley’s resignation, be filled by Ms Low by order of the Court. Ms Low appeared suitably qualified to act as court-appointed liquidator of Manamy.

The court ordered that the role of the parties be amended to plaintiff, first defendant and second defendant. The court noted the proposed resignation of Mr Dudley as liquidator of Manamy, and declared it was appropriate for him to resign as liquidator as proposed. Pursuant to s 473(7) of the Corporations Act, the vacancy in the office of liquidator which will arise upon the resignation of Mr Dudley as court-appointed liquidator of Manamy be filled by Ms Low of Sheridans Accountants.