BREAKING: Federal Court has just held that if an Administrator consents in writing to a proceeding, they cannot later revoke, suspend or withdraw the consent.
The issue at stake was whether an Aboriginal Corporation, under Administration, could rely upon the stay of proceedings powers under s440D of the Corporations Act to prevent cross-claims against the Company.
The Court ruled it could not, because the Administrator had earlier on provided written consent (to keep business as usual, whilst he got up to speed).
Another very interesting argument that was run by the WA State Government, but not ultimately decided, related to whether a cross-claim was even a proceedings to which the stay would apply. See [para 20] onwards.
That’s exactly what we need … more court applications, at a time when the VA’s focus should be on maximising returns for creditors and (if possible) saving the business/company.
See [para 32] for some other reasons highlighted by the Court as to why it might not be the best argument.