Robert Michael And Robert Conry Kirman And Brauer as joint and several administrators of Marine Produce Australia Pty Ltd (Administrators Appointed) And Ors

The Supreme Court of Western Australia heard an application by Robert Michael and Robert Conry Kirman and Brauer, who serve as joint and several administrators of Marine Produce Australia Pty Ltd and its subsidiaries. The administrators sought an order to limit their personal liability under a Loan Agreement with Tassal Operations Pty Ltd, as provided under the Corporations Act 2001. The application was made on an urgent basis, as the companies had a limited timeframe to seek such relief. The administrators argued that additional funding was necessary for the companies to continue trading, thereby maximising returns for creditors. The court examined the legal principles surrounding the modification of the operation of the Corporations Act, particularly focusing on the powers of the court under section 447A to limit the personal liability of administrators. The court found that the Loan Agreement was reasonable and in the best interests of the companies' creditors, and that the application was made appropriately by the administrators. The court granted the application, modifying the operation of the Corporations Act to limit the personal liability of the administrators under the Loan Agreement. The court also ordered that notice of the orders be given to the companies' creditors and the Australian Securities and Investments Commission. The costs of the application were deemed to be costs in the administration of the companies and were to be paid from the companies' assets.