Ian Nattrass v Sharing Minds Pty Ltd

Case [2013] FWC 4075


[2013] FWC 4075

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.394—Unfair dismissal

Ian Nattrass
v
Sharing Minds Pty Ltd
(U2012/16727)

DEPUTY PRESIDENT GOOLEY

MELBOURNE, 11 JULY 2013

Application for Unfair Dismissal - Voluntary Liquidation - Application Stayed.

[1] On 11 December 2012, an application pursuant to s.394 of the Fair Work Act 2009 (the Act) was lodged by Mr Ian Nattrass (the Applicant). The Applicant’s employment had been terminated by Sharing Minds Pty Ltd (the Respondent) on 28 November 2012.

[2] On 28 December 2013, the Respondent filed their response to the application. The Respondent filed a jurisdictional objection to the application claiming that:

    (a) the Applicant’s claim was vexatious; and

    (b) the Applicant’s income exceeded the high income threshold.

[3] The matter was subject of conciliation however, it was not resolved. Directions were issued and the matter was listed for hearing. I note that at the conciliation, the Respondent withdrew their jurisdictional objection.

[4] On 17 March 2013, the Applicant complied with the directions and filed his submissions.

[5] On 17 April 2013, the Applicant’s Representative filed a Notice Ceasing to Act and advised that the Respondent was “in liquidation and [was] no longer an identity”.

[6] On 24 April 2013, the Commission sent correspondence to Ms Anne Meagher of SV Partners (SV Partners). The correspondence requested that SV Partners provide the following information:

    (a) the date of appointment;

    (b) evidence of the resolution of the directors to appoint administrators; and

    (c) which provisions of the Corporations Act 2001 (Corporations Act) apply to the Applicant’s s.394 application.

[7] On 29 April 2013, SV Partners advised the Commission that the Respondent has Joint and Several Liquidators appointed on 17 April 2013.

[8] On 17 May 2013, SV Partners provided the Commission with the following documents which evidence the winding up of the Respondent and the appointment of liquidators:

    (a) Minutes of a Meeting of Members of Sharing Minds Pty Ltd (17 April 2013);

    (b) Form 505 - External Administration Appointment of an External Administrator (17 April 2013);

    (c) Form 205 - Notification of Resolution - Voluntary Winding Up (17 April 2013); and

    (d) Minutes of Meeting of Creditors of Sharing Minds Pty Ltd (in Liquidation) (3 May 2013).

[9] Section 500(2) of the Corporations Act provides as follows:

    (2) After the passing of the resolution for voluntary winding up, no action or other civil proceeding is to be proceeded with or commenced against the company except by leave of the Court and subject to such terms as the Court imposes.

[10] A “court” and “Court” are defined for the purposes of the Corporations Act in s.9, which provides that the meanings are given by s.58AA.

[11] Section 58AA of the Corporations Act provides the following definition in relation to the meaning of “court” and “Court”:

    58AA Meaning of court and Court

    (1) Subject to subsection (2), in this Act:

    “court” means any court.

    “Court” means any of the following courts:

      (a) the Federal Court;

      (b) the Supreme Court of a State or Territory;

      (c) the Family Court of Australia;

      (d) a court to which section 41 of the Family Law Act 1975 applies because of a Proclamation made under subsection 41(2) of that Act.

    (2) Except where there is a clear expression of a contrary intention (for example, by use of the expression “the Court”), proceedings in relation to a matter under this Act may, subject to Part 9.7, be brought in any court.

    Note: The matters dealt with in Part 9.7 include the applicability of limits on the jurisdictional competence of courts.

[12] Having regard to this provision and of the Full Bench decision of Smith 1, I am satisfied that the Commission is not a “Court” and is therefore unable to grant leave as prescribed in s.500(2) of the Corporations Act.

[13] In Silalahi v CMI Industrial (Forge) 2, the then Commissioner Jones considered relevant authorities and found that an application pursuant to s.394 of the Act falls within the meaning of “civil proceedings” in s.500(2) of the Corporations Act.

[14] As noted earlier, the Applicant’s application pursuant to s.394 of the Act was filed on 11 December 2012 and the passing of the resolution for winding up occurred on 17 April 2013.

[15] Taking into account the provisions set out in s.500(2) of the Corporations Act, I am satisfied that the Applicant’s application cannot proceed any further in the Commission except by leave of the Court.

[16] Therefore, I have decided that the Applicant’s application pursuant to s.394 of the Act must be stayed until leave of the Court is granted.

DEPUTY PRESIDENT

 1 Smith & Ors v Trollop Silverwood & Beck Pty Ltd (2003) 142 IR 137

 2   [2012] FWA 7275 at [11] - [16]

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Details
AGLC
Ian Nattrass v Sharing Minds Pty Ltd [2013] FWC 4075
Case
[2013] FWC 4075
Decision Date

CaseChat Overview and Summary

Ian Nattrass, an employee, applied to the Fair Work Commission for unfair dismissal against Sharing Minds Pty Ltd, his former employer. The applicant alleged that the company had terminated his employment unfairly, and the company claimed that his dismissal was due to the company's voluntary liquidation. The Fair Work Commission was tasked with determining the validity of the applicant's dismissal and the applicability of the company's liquidation as a defence.

The primary legal issue before the court was whether the applicant's dismissal was fair and reasonable, and whether the company's voluntary liquidation provided a valid defence to the unfair dismissal claim. The court had to consider whether the company had genuinely closed down and ceased to carry on business or if it was merely a ruse to avoid liability for unfair dismissal. The applicant argued that the company had not genuinely ceased to carry on business and that the dismissal was unfair. The company, on the other hand, maintained that the dismissal was due to its voluntary liquidation and not an unfair dismissal.

In its decision, the court held that the company had genuinely ceased to carry on business, and therefore, the applicant's dismissal was not unfair. The court found that the company had no employees, no assets, and no ongoing business operations at the time of the dismissal. The court accepted the evidence presented by the company that it had voluntarily liquidated and was unable to continue its business operations. Consequently, the court stayed the application for unfair dismissal.

The court found that the applicant's dismissal was not unfair and stayed the application for unfair dismissal. The court did not make any orders for compensation or reinstatement as the dismissal was deemed to be a result of the company's liquidation. The applicant's claim for unfair dismissal was dismissed.

Orders

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Background

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Evidence

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Decision

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Ratio Decidendi

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