Jones, in the matter of Watson [2009] FCA 869 (5 August 2009)

Last Updated: 13 August 2009

FEDERAL COURT OF AUSTRALIA

Jones, in the matter of Watson [2009] FCA 869

Corporations Act 2001 (Cth)

MICHAEL GREGORY JONES, IN THE MATTER OF DAVID PATRICK WATSON

NSD 801 of 2009

EMMETT J
5 AUGUST 2009
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NSD 801 of 2009
GENERAL DIVISION

MICHAEL GREGORY JONES Plaintiff

JUDGE:	EMMETT J
DATE OF ORDER:	5 AUGUST 2009
WHERE MADE:	SYDNEY

THE COURT NOTES THAT:

1. On 18 July 2009 David Patrick Watson, a registered liquidator, died.
   

THE COURT ORDERS THAT:

2. In relation to the company in Schedule 1 to these Short Minutes of Order, of which Mr David Patrick Watson is sole Court appointed Liquidator, pursuant to Section 473(7) of the Corporations Act 2001 (Cth), Michael Gregory Jones be and is hereby appointed Liquidator of that company.
3. In relation to the company in Schedule 2 to these Short Minutes of Order, of which David Patrick Watson was appointed sole Liquidator under a members’ voluntary winding up, pursuant to Section 502 of the Corporations Act 2001 (Cth), Michael Gregory Jones be and is hereby appointed Liquidator of that company.
4. In relation to each of the companies the subject of creditors’ voluntary winding up identified in Schedule 3 to this Originating Process, pursuant to Section 502 of the Corporations Act 2001 (Cth), Michael Gregory Jones be and is hereby appointed Liquidator of each company.
5. The Plaintiff, at a time convenient in relation to each liquidation, inform creditors and members of the relevant company of his appointment as Liquidator, that they may, where appropriate, apply for his removal pursuant to Sections 503 or 473(1) of the Corporations Act 2001 (Cth) and of the reasons of the Court in making these orders.
6. The terms of this Order be notified to Australian Securities and Investments Commission in relation to each company in Schedule 1, 2 and 3 within 7 days of the making of this order.
7. Liberty be reserved to the Plaintiff to apply with respect to any other liquidations in respect of which David Patrick Watson is liquidator.
   

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using eSearch on the Court’s website.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY		NSD 801 of 2009
GENERAL DIVISION
	MICHAEL GREGORY JONES Plaintiff
JUDGE:	EMMETT J
DATE:	5 AUGUST 2009
PLACE:	SYDNEY

REASONS FOR JUDGMENT

1. This application is brought by Mr Michael Gregory Jones, an official liquidator. Mr Jones has practised as a liquidator for in excess of 30 years. He is the managing director and an employee of EMGEJAY Pty Ltd, which trades as Jones Partners Insolvency and Business Recovery (Jones Partners). Jones Partners is approved by the Institute of Chartered Accountants.
2. Until 18 July 2009 Mr David Watson was an employee of Jones and Partners. On 18 July 2009 Mr Watson died. At the time of his death Mr Jones was the liquidator of a number of companies. He was the liquidator of JJWD International Pty Ltd having been appointed by the Court pursuant to the provisions of the Corporations Act 2001 (Cth) (the Act). He was also liquidator of Crudit Pty Ltd, having been appointed pursuant to a members’ voluntary winding up. Finally, he was also the liquidator of HC Constructions and Formwork Pty Ltd, Family Catering Pty Limited, CJ Santana Pty Limited, JY Jackson Gold Pty Ltd and P & W Transport Services Pty Ltd having been appointed pursuant to a creditors’ voluntary winding up of those companies. All of the files in relation to the winding up of those companies have been maintained by staff employed by Jones Partners.
3. Each liquidation has been managed within Jones Partners using the stationery, time costing, reporting, accounting and recording systems of Jones Partners. All of the work performed by Mr Watson and managers and office staff of Jones Partners has been recorded on the computerised office systems of Jones Partners. All of the hard copies of the liquidation files have been maintained and kept at the premises of Jones Partners.
4. It would be possible for creditors’ meetings to be held in respect of each company in liquidation for the purpose of appointing a new liquidator. However, Mr Jones brings this application in respect of all of the companies seeking the appointment of himself as liquidator by the Court.
5. Section 473(7) of the Act provides that a vacancy in the office of a liquidator appointed by the Court must be filled by the Court. Section 502 of the Corporations Act provides that, if from any cause there is no liquidator acting in respect of a voluntary winding up, the Court may appoint a liquidator.
6. It would be convenient for Mr Jones to be appointed as liquidator of each of the companies rather than to convene meetings of creditors for the purposes of appointing or approving Mr Jones. It would be wasteful and inconvenient for each of the groups of creditors to be consulted separately about the change in liquidator when the internal management of each liquidation will remain unchanged insofar as Jones Partners would continue to be responsible for the administration through Mr Jones as liquidator. If the creditors were dissatisfied by the appointment of Mr Jones, it would be possible for them to apply for his removal.
7. In all of the circumstances I consider that it is appropriate to accede to the application by Mr Jones. However, I consider that it would be appropriate to direct Mr Jones to notify the creditors and members of the companies in question of his appointment as liquidator and to inform the members and creditors of the provisions of ss 503 and 473(1), where appropriate. They are the provisions whereby the creditors or members may apply in appropriate circumstances for removal of a liquidator. There is no reason of course why, in notifying the creditors and members, Mr Jones should not inform them of the reasons of the Court for making the orders that I now propose to make.

I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Emmett.

Associate:
Dated: 5 August 2009

Solicitor for the Plaintiff:

Sally Nash & Co.

Date of Hearing:	5 August 2009
Date of Judgment:	5 August 2009