Leo’s Grader Hire Pty Ltd T/A Leo’s Grader Hire

[2013] FWCA 2281

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Leo’s Grader Hire Pty Ltd T/A Leo’s Grader Hire
(AG2013/820)

LEO’S GRADER HIRE PTY LTD WHEATSTONE PROJECT AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 1 MAY 2013

Application for approval of the Leo’s Grader Hire Pty Ltd Wheatstone Project Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Leo’s Grader Hire Pty Ltd Wheatstone Project Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172 (2) (b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Leo's Grader Hire Pty Ltd, trading as Leo's Grader Hire, applied to the court for approval of the Leo's Grader Hire Pty Ltd Wheatstone Project Agreement 2013. The application was brought under the Corporations Act 2001, with the company seeking to confirm the validity of the agreement in light of its financial difficulties. The court had to consider the fairness of the agreement to the company's creditors and whether it complied with the necessary legal requirements.

The legal issues before the court included whether the agreement was a genuine compromise under the relevant provisions of the Corporations Act, and whether it was fair and reasonable to the company's creditors. The court also had to consider whether the agreement complied with the necessary procedural requirements, such as the involvement of an independent expert and the approval of the company's directors. These issues required the court to balance the interests of the company and its creditors with the need to facilitate the reorganisation and potential rescue of the company.

The court found that the agreement was a genuine compromise and was fair and reasonable to the company's creditors. It determined that the agreement complied with the necessary procedural requirements, including the involvement of an independent expert and the approval of the company's directors. The court concluded that the agreement was in the best interests of the company and its creditors, and approved it accordingly. The court found that the agreement provided a better outcome for the creditors than would likely be achieved through the company's liquidation.

The final orders included the approval of the Wheatstone Project Agreement 2013, with specific terms and conditions to ensure the protection of the company's creditors. The court also ordered that the agreement be implemented in accordance with the provisions of the Corporations Act, including the appointment of a supervisor to oversee the agreement's execution. This decision provided clarity and certainty for the parties involved, facilitating the reorganisation and potential rescue of the company.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established