Viropoulos v Falcon G.T. Pty Limited

The case of Viropoulos v Falcon G.T. Pty Limited involved an application to remove the liquidators of Falcon G.T. Pty Limited. The applicants, Viropoulos, contended that the liquidators were not validly appointed and that there was a reasonable apprehension of their lack of impartiality. The dispute was heard and determined in the Federal Court of Australia.

The central legal issues in this case revolved around the validity of the liquidators' appointment and their potential bias. Specifically, the court had to determine whether the creditors could only fill the vacancy arising from the resignation of a liquidator at a meeting convened by any two creditors, as provided for under section 499(5) of the Corporations Act 2001 (Cth). Additionally, the court needed to assess whether the resigning liquidator was entitled to exercise a casting vote at the creditors' meeting and if the liquidators' impartiality was compromised by their relationship with a major creditor.

In examining these issues, the court found that the meeting to appoint liquidators was validly convened by the resigning liquidator and that the power to convene such a meeting under section 499(5) of the Corporations Act is facultative. The court also concluded that the resolution appointing liquidators to fill the vacancy was validly passed, as the casting vote was given to the chairperson presiding at the meeting, not to the holder of a particular office. Furthermore, the court held that the liquidators' impartiality was not compromised, noting that the major creditor was not prepared to provide funding for the examination of a director to any liquidator other than those nominated by them, and that the former partner of the liquidators had provided advice to the major creditor when they were partners of the liquidators.

Consequently, the court dismissed the application for the removal of the liquidators, finding no valid grounds for their removal based on the evidence presented. The court's decision affirmed the validity of the liquidators' appointment and their impartiality in the administration of the company's affairs.