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[2011] NSWSC 639
Supreme Court of NSW
2011-06-20
Ward J, Re Hugh J, Ms JA
Original judgment source is linked above.
Can and should a creditor (or someone claiming as such) of a company in liquidation be given access to the documents elicited from a liquidator's compulsory examination, when sought by that creditor to assist it in proceedings against the Company or, as here, associated defendants? Is there any difference between documents specifically put to an examinee and marked for identification and other documents obtained prior to or in the course of the examination? The examinees or their companies oppose access and seek return of all original documents and destruction of all copies. The liquidator, for his part, is not opposed to making the documents available, considering as he does that their use by the creditor in pursuing the litigation may be in the interests of the liquidation. ...
Thus a fair way of putting the matter is to conclude that the trend of expansion of the examination provisions starting in 1991 and expanded in 1993 comports with a legislative scheme that allows creditors access not only to the transcript but also to the documents produced pursuant to the examination if necessary with a Court direction to ensure no abuse. It would be incongruous that creditors are permitted to attend such examinations, in public unless ordered otherwise, able to hear the questions and answers put including any reference to documents produced, later be entitled as of right to a copy of the written record of the examination, yet be denied copies of the produced documents after the examination. Such access, if allowed, is not ordinarily antithetical to the legislative purpose or thereby an abuse of that process. The contrary is borne out by the legislative scheme and the prior legislative history of expansion of the examination process. ...
It is against that background that I now approach the specific provisions of the Corporations Law. I am satisfied that there are a number of sources of power available to the liquidator to do that which he does not oppose doing, namely to make available the documents which were utilised in the examination either by directly being marked for identification or as otherwise being produced for the examination. I see no sensible distinction being drawn between the two categories of document. The documents not marked for identification were still capable of informing the examination and influencing the questions asked. Indeed the liquidator's submissions appear to favour that access. Thus I would include in any access all documents produced, in the absence of any evidence from those opposing access that a document was produced which was entirely extraneous to any possible purpose of the original examination. (my emphasis) 57It seems to me that the order for access to transcript should include access or inspection of the documents provided to each of Messrs Ryan and Sheedy and marked for identification in the course of the examinations as sought by BMC. Orders 58Accordingly, for the reasons set out above, I propose to make the following orders:
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 24 June 2011
Friedrich
Herald and Weekly Times Ltd
[1998] SASC 7199
(1992) 28 NSWLR 512
(2005) 65 NSWLR 36
(2004) 88 SASR 541
(2003) 176 FLR 341
(2005) 145 FCR 176
(1998) 72 ALJR 375