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McDermott, Ross John and Potts, John Stuart in their capacities as joint and several liquidators of Lonnex P/L (in liquidation) (ACN 097 786 751) [2019] VSCA 23

CORPORATIONS
Victorian Court of Appeal
Judge(s): 
Whelan AP, McLeish and Hargrave JJA
Parties: 

McDermott, Ross John and Potts, John Stuart in their capacities as joint and several liquidators of Lonnex P/L (in liquidation) (ACN 097 786 751)

Judgment Date: 
19 February 2019
Catchwords: 

CORPORATIONS - Liquidation - Corporations Act 2001 (Cth) ss 477(2B), 511 - Liquidators seeking direction that they are justified in compromising proceeding and approval under s 477(2B) - All significant creditors opposing settlement of proceeding - Creditors' views an important consideration - Role and adequacy of legal advice on settlement - Liquidators personally at risk of adverse costs if proceeding is discontinued - Relationship between ss 477(2B) and 511 - Re Spedley Securities Ltd (in liq) (1992) 9 ACSR 83, Corporate Affairs Commission v ASC Timber Pty Ltd (1998) 29 ACSR 109, Re One.Tel Ltd (2014) 99 ACSR 247, Re Great Southern Managers Australia Ltd (in liq); Ex parte Jones (2014) 9 BFRA 555, considered.

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