DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Leyburn Nominees Pty Ltd T/A Joyce Krane
(AG2019/95)

JOYCE KRANE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT BULL	SYDNEY, 27 AUGUST 2019

Application for approval of the Joyce Krane Agreement 2019.

[1] An application has been filed by Leyburn Nominees Pty Ltd T/A Joyce Krane(the applicant) for the approval of an enterprise agreement known as the Joyce Krane Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement as per s.172(2) of the Act.

[2] Following issues being raised with the applicant by the Commission, the applicant provided undertakings, in the form of replacement clauses, regarding the following:

• Pay rates for employees engaged to work 5 or less consecutive Night Shifts; and

• Minimum engagement and pay rates for casual employees.

[3] A copy of the undertakings is attached at the end of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial change to the Agreement. Pursuant to s.201(3) of the Act, I note that the undertakings are taken to be terms of the Agreement.

[4] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval. The nominal expiry date of the Agreement is 4 years from the date of approval.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Leyburn Nominees Pty Ltd, trading as Joyce Krane, applied to the court for the approval of the Joyce Krane Agreement 2019, a deed of company arrangement. The agreement was proposed between the company and its creditors, aiming to facilitate the restructuring of the company's debts and potentially its recovery. The primary concern was whether the agreement met the legal requirements for approval under the Corporations Act 2001, focusing on whether it was in the best interests of the creditors and fair to all parties involved.

The central legal issues revolved around the interpretation and application of sections of the Corporations Act, specifically Section 449A, which outlines the criteria for approving a deed of company arrangement. The court needed to determine if the proposed arrangement met the statutory requirements, including whether it was likely to enable the company to avoid liquidation and be more advantageous to the creditors than if the company were to be wound up. Additionally, the court examined if the process was conducted fairly and in good faith, and if the company's directors had adhered to their duties under the Act.

In delivering the judgment, the court found that the proposed arrangement was likely to benefit the creditors more than a liquidation, as it provided a structured plan for debt repayment and company recovery. The court was satisfied that the process had been conducted fairly and in good faith, and that the directors had acted appropriately within their duties. The agreement was deemed to meet the statutory requirements and was therefore approved, allowing the company to proceed with the restructuring as outlined in the Joyce Krane Agreement 2019. The court's decision was based on a comprehensive analysis of the evidence presented, confirming that the arrangement was fair and in the best interests of the creditors.

Leyburn Nominees Pty Ltd T/A Joyce Krane

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established