FEDERAL COURT OF AUSTRALIA
Hughes, in the matter of Firepower Operations Pty Ltd (In Liquidation) [2009] FCA 1331
CORPORATIONS – application for issue of examination summons under s 596A of the Corporations Act 2001 (Cth)
Corporations Act 2001 (Cth) ss 596A, 596B
IN THE MATTER OF FIREPOWER OPERATIONS PTY LIMITED (ACN 112 074 549) (IN LIQUIDATION)
BRYAN KEVIN HUGHES AS LIQUIDATOR OF FIREPOWER OPERATIONS PTY LTD (ACN 112 074 549) (IN LIQUIDATION)WAD 197 of 2009
SIOPIS J
5 NOVEMBER 2009
PERTH
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
WAD 197 of 2009
IN THE MATTER OF FIREPOWER OPERATIONS PTY LIMITED (ACN 112 074 549) (IN LIQUIDATION)
BRYAN KEVIN HUGHES AS LIQUIDATOR OF FIREPOWER OPERATIONS PTY LTD (ACN 112 074 549) (IN LIQUIDATION)
Plaintiff
JUDGE:
SIOPIS J
DATE OF ORDER:
5 NOVEMBER 2009
WHERE MADE:
PERTH
THE COURT ORDERS THAT:
1.This application be heard ex parte and be returnable instanter.
2.Pursuant to Section 596A of the Corporations Act an examination summons be issued to Timothy Francis Johnston of or formerly of No 1, Chidley Way, Mosman Park in the state of Western Australia, in the form of the draft examination summons annexed hereto and marked “A”.
3.Such examination summons be returnable before a Registrar at 10.15 am on 26 November 2009.
4.Service of the examination summons may be effected by service of a copy of the sealed summons.
5.There be liberty to the applicant to apply.
Annexure ‘A’
IN THE FEDERAL COURT OF AUSTRALIA )
WESTERN AUSTRALIA DISTRICT REGISTRY )
GENERAL DIVISION )No. W of 2009
IN THE MATTER OF FIREPOWER OPERATIONS PTY LTD (in liquidation) ACN 112 074 549
EX PARTE
BRYAN KEVIN HUGHES AS LIQUIDATOR OF
FIREPOWER OPERATIONS PTY LTD (ACN 112 074 549)
(IN LIQUIDATION)
ApplicantSUMMONS FOR EXAMINATION
A. DETAILS OF SUMMONS
TO: TIMOTHY FRANCIS JOHNSTON of or formerly of No 1 Chidley Way, Mosman Park, Western Australia
You are summoned under section 596A of the Corporations Act to:
(a) attend before the Registrar at the Federal Court, Commonwealth Law Courts, 1 Victoria Avenue, Perth at 10.15 am on 26 November 2009, and from day to day until excused by the Court, to be examined on oath or affirmation about the examinable affairs of Firepower Operations Pty Ltd;
Filed on behalf of the Applicant
Prepared by: Tottle Partners Telephone: 9217 6700 Lawyers Facsimile: 9217 6710 Level 40 BankwestTower Reference: 20080488 108 St George’s Terrace Contact: Stephen Penrose PERTH WA 6000 Summons (b) to produce at the examination all those books and records of Firepower Operations Pty Ltd which you have in your power, possession or control.
Date: 5 November 2009
______________________________
RegistrarB. NOTICE TO PERSON TO BE EXAMINED
The Court may order that the questions put to you and the answers given by you at the examination are to be recorded in writing and signed by you.
If you do not attend the examination in accordance with this summons, without reasonable cause, you may be arrested and imprisoned without further notice.
This summons is issued at the request of Bryan Kevin Hughes whose address for service is care of Tottle Partners, Level 40, 108 St Georges Terrace, Perth, Western Australia.
Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using eSearch on the Court’s website.
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
WAD 197 of 2009
IN THE MATTER OF FIREPOWER OPERATIONS PTY LIMITED (ACN 112 074 549) (IN LIQUIDATION)
BRYAN KEVIN HUGHES AS LIQUIDATOR OF FIREPOWER OPERATIONS PTY LTD (ACN 112 074 549) (IN LIQUIDATION)
Plaintiff
JUDGE:
SIOPIS J
DATE:
5 NOVEMBER 2009
PLACE:
PERTH
REASONS FOR JUDGMENT
This is an application which is brought by Mr Bryan Kevin Hughes, as Liquidator of Firepower Operations Pty Ltd (In Liquidation) under s 596A of the Corporations Act 2001 (Cth) for the issue of an examination summons to Mr Timothy Francis Johnston.
Section 596A of the Corporations Act provides as follows:
The Court is to summon a person for examination about a corporation’s examinable affairs if:
(a)an eligible applicant applies for the summons; and
(b)the Court is satisfied that the person is an officer or provisional liquidator of the corporation or was such an officer or provisional liquidator during or after the 2 years ending:
(i)if the corporation is under administration – on the section 513C day in relation to the administration; or
(ii)if the corporation has executed a deed of company arrangement that has not yet terminated – on the section 513C day in relation to the administration that ended when the deed was executed; or
(iii)if the corporation is being, or has been, wound up – when the winding up began; or
(iv)otherwise – when the application is made.
The provisions of s 596A require that the Court issues an examination summons if the conditions referred to therein, are fulfilled. Unlike s 596B of the Corporations Act, the Court does not have a discretion as to whether to order that an examination summons should issue. The distinction is of some importance because the range of persons who are eligible to be examined pursuant to an application made under s 596B is considerably wider than those who may be examined pursuant to an application made under s 596A.
In support of the application made under s 596A, the applicant relies upon an affidavit of Ms Kazi Mai Lyn Klopper which annexes a company search of Firepower Operations Pty Ltd.
The liquidator of a company in liquidation is an “eligible applicant” for the purposes of s 596A. The company search discloses that Mr Bryan Kevin Hughes was appointed the Liquidator of Firepower Operations Pty Ltd on 4 August 2008, and continues to act in that capacity. I am satisfied that he is an eligible applicant under s 596A.
I am also satisfied on the basis of the information in the company search that Mr Johnston was a director, and therefore, an officer, of the company at the time its winding up began. He is, therefore, a person to whom s 596A(b)(iii) applies.
In those circumstances, I am prepared to make the orders for the issue of an examination summons to Mr Johnston. In my view, however, the examination summons should be returnable as soon as practicable. On that basis, I will order that the examination summons be returnable before a Registrar of this Court at 10:15 am on 26 November 2009.
I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Siopis. Associate:
Dated: 17 November 2009
Counsel for the Plaintiff: Mr Stephen Penrose Solicitor for the Plaintiff: Tottle Partners
Date of Hearing: 5 November 2009 Date of Judgment: 5 November 2009
- AGLC
- Hughes, in the matter of Firepower Operations Pty Ltd (In Liquidation) [2009] FCA 1331
- Case
- [2009] FCA 1331
- Decision Date
CaseChat Overview and Summary
The court was required to determine whether it was appropriate to issue the examination summons under Section 596A of the Corporations Act. The liquidator argued that the examination was necessary to ascertain the company's assets and affairs to facilitate the liquidation process. The court considered the liquidator's affidavit and determined that there were reasonable grounds to suspect that Johnston had knowledge relevant to the company's affairs and potentially held documents that could assist in the liquidation. Given the urgency and the potential for Johnston to dispose of relevant documents, the court found it appropriate to issue the summons.
The Federal Court issued the examination summons, directing Johnston to attend the examination and produce relevant documents. The court emphasised the importance of the liquidator’s role in ensuring that the company’s assets are properly identified and recovered for the benefit of creditors. The court acknowledged the urgency of the application due to the risk of Johnston disposing of or hiding relevant documents. The summons was returnable on 26 November 2009, and service could be effected by delivering a copy of the sealed summons. The liquidator was granted liberty to apply further if necessary.
Orders
Orders of the court
1. This application be heard ex parte and be returnable instanter.
2. Pursuant to Section 596A of the Corporations Act an examination summons be issued to Timothy Francis Johnston of or formerly of No 1, Chidley Way, Mosman Park in the state of Western Australia, in the form of the draft examination summons annexed hereto and marked “A”.
3. Such examination summons be returnable before a Registrar at 10.15 am on 26 November 2009.
4. Service of the examination summons may be effected by service of a copy of the sealed summons.
5. There be liberty to the applicant to apply.
Annexure ‘A’
IN THE FEDERAL COURT OF AUSTRALIA )
WESTERN AUSTRALIA DISTRICT REGISTRY )
GENERAL DIVISION )
No. W of 2009
IN THE MATTER OF FIREPOWER OPERATIONS PTY LTD (in liquidation) ACN 112 074 549
EX PARTE
BRYAN KEVIN HUGHES AS LIQUIDATOR OF
FIREPOWER OPERATIONS PTY LTD (ACN 112 074 549)
(IN LIQUIDATION)
Applicant
SUMMONS FOR EXAMINATION
A. DETAILS OF SUMMONS
TO: TIMOTHY FRANCIS JOHNSTON of or formerly of No 1 Chidley Way, Mosman Park, Western Australia
You are summoned under section 596A of the Corporations Act to:
(a) attend before the Registrar at the Federal Court, Commonwealth Law Courts, 1 Victoria Avenue, Perth at 10.15 am on 26 November 2009, and from day to day until excused by the Court, to be examined on oath or affirmation about the examinable affairs of Firepower Operations Pty Ltd;
Filed on behalf of the Applicant
Prepared by:
Tottle Partners
Telephone: 9217 6700
Lawyers
Facsimile: 9217 6710
Level 40 BankwestTower
Reference: 20080488
108 St George’s Terrace
Contact: Stephen Penrose
PERTH WA 6000
Summons
(b) to produce at the examination all those books and records of Firepower Operations Pty Ltd which you have in your power, possession or control.
Date: 5 November 2009
______________________________
Registrar
B. NOTICE TO PERSON TO BE EXAMINED
The Court may order that the questions put to you and the answers given by you at the examination are to be recorded in writing and signed by you.
If you do not attend the examination in accordance with this summons, without reasonable cause, you may be arrested and imprisoned without further notice.
This summons is issued at the request of Bryan Kevin Hughes whose address for service is care of Tottle Partners, Level 40, 108 St Georges Terrace, Perth, Western Australia.
Note:
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
Established by: SIOPIS J
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