Re Golden Refining Corporation Ltd (Administrators Appointed ACN 002 771 066);

The case before the Supreme Court of Western Australia involved an application for an extension of the convening period for a meeting of creditors under section 439A(6) of the Corporations Law. The applicants, Martin Bruce Jones and Garry John Trevor, sought a 60-day extension of the convening period for Golden West Refining Corporation Ltd (Administrators Appointed) (ACN 002 771 066). The primary issue before the court was whether the convening period should be extended to allow the administrators to investigate a potential claim against the company's auditors, which might improve the company's financial position. The court needed to balance the need for expeditious administration against the potential benefits of extending the convening period to maximize the company's chances of continuing in business or terminating its existence appropriately.

The court's reasoning was based on established principles from previous cases, such as Re Allbuild Construction Co Pty Ltd; Ex parte Featherby & Anor [2000] WASC 227 and Re Port Kennedy Resorts Pty Ltd (Administrators Appointed) [2000] WASC 302. These cases highlighted that extensions of the convening period were not granted as a matter of course but were exceptions. The court noted that the decision should consider the spirit and object of Division 6 of Part 5.3A of the Corporations Law, which is to maximize the chances of the company continuing in existence or terminating its existence in the most appropriate way. The affidavit provided by Garry John Trevor explained the potential benefits of extending the convening period to investigate the claim against the auditors, which could result in an improved financial position for the company and its creditors. The court found that the proposed 60-day extension was appropriate to allow a thorough review of the legal situation and that no strong objections were presented by the creditors.

In conclusion, the court allowed the application for an extension of the convening period by 60 days. The court ordered that the applicants have liberty to convene the meeting of creditors before the end of the extended convening period if the necessary information was obtained earlier.