29 April 2010

s 439A report leads to removal of liquidators

Authors: David Proudman

In Independent Cement and Lime Pty Ltd v Brick and Block Company Ltd (in liquidation) (receivers & managers appointed) [2010] FCA 352, Justice Finkelstein considered the duty of voluntary administrators to investigate and report on potential litigation recoveries in section 439A reports. Finkelstein J ordered the removal of the liquidators because of deficiencies in their investigations during the administration, which lead to a lack of confidence in the capacity of the liquidators to pursue recovery actions for the benefit of the creditors. This updates touches on some of the key points of this decision and what it means for administrators.

Download: Case summary - Brick Block April 2010.pdf (39 Kb)

< return to news & media