[2005] NSWSC 347

Albarran v Prescription Healthcare

Convening period extended

Catchwords

CORPORATIONS - voluntary administration - application to extend convening period under section 439A(6) Corporations Act 2001 (Cth) - available where validity of appointment of administrators in question - desirability of an order extending convening period to a fixed date rather than to a date ascertainable by inquiring whether other events have occurred

Judgment

[1]
HIS HONOUR : This is an application to extend the convening period of 13 corporations. Those corporations are ones concerning which there is an alleged appointment of administrator. The validity of the appointment of the administrator is the subject of proceedings in the Court. That set of proceedings has been set down for hearing on an urgent basis on 12 and 13 April 2005. The hearing which will take place on that day is a hearing which relates to a question upon which the validity of the appointment of the administrator turns.
[2]
The convening period of the administration is likely to expire, in relation to all of the companies, on a date which is either 28 days after 16 March or 28 days after 18 March 2005. There are these different dates, because the administrators were purported to be appointed to the companies on different dates.
[3]
It is appropriate, in these circumstances, to extend the convening period for a short time. It is done so that the administrators are not under statutory obligations to call meetings of creditors, under section 439A Corporations Act 2001 (Cth), while their own standing is in question.
[4]
It had been submitted that an order should be made extending the convening period to “5 days after the final determination” of the proceedings which are set for hearing next week. I think it is not desirable, concerning a matter of company administration which has effects for people who are not parties to the litigation, to have an order extending the convening period to a time which cannot be ascertained by simply reading the order. In my view it is preferable to have a fixed date when the convening period would end. If it turns out that an extension is needed, then it can be applied for.
[5]
Without prejudice to any question of whether the plaintiffs are validly appointed as administrator of the first to thirteenth defendants, order that the period within which the plaintiffs are required to convene meetings of the creditors of the first to thirteenth defendants under section 439A be extended to and including 20 April 2005.
[6]
I make an order that the order be entered forthwith.
[7]
I grant liberty to restore the matter before the Corporations Judge or the Duty Judge on two days notice.
[8]
Reserve the costs of the present application.