National Acceptance Corporation Pty Ltd v Benson and Ors

(1988) 12 NSWLR 213

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Between: National Acceptance Corporation Pty Ltd
And: Benson and Ors

Court:

Judges: Kirby P
Priestley JA
Clarke JA

Subject References:
COMPANIES
WINDING UP
Effect of order
Disposition of property after commencement of winding up by the court
Avoidance of disposition
'Void'

Legislative References:
Companies (New South Wales) Code - s 368

Case References:
Brady v Stapleton - (1952) 88 CLR 322
Chapman v Shepherd - (1867) LR 2 CP 228
Commercial Bank of Australia v Carruthers - (1964) 6 FLR 247; 82 WN (Pt 1) (NSW) 76; [1964-5] NSWR 1197
Craddock v Hopfner - (1986) 10 ACLR 714; 4 ACLC 421
Gray's Inn Construction Co Ltd, Re - [1980] 1 WLR 711; [1980] 1 All ER 814
Green v Rozen - [1955] 1 WLR 741; [1955] 2 All ER 797
London, Hamburg and Continental Exchange Bank; Emmerson's Case, Re - (1866) LR 2 Eq 231; on appeal (1866) LR 1 Ch App 433
Mal Bower's Macquarie Electrical Centre Pty Ltd (In Liq) and the Companies Act, Re - [1974] 1 NSWLR 254
Mercredits Finance Ltd v Ramsey - [1979] 1 NSWLR 354
Omnico Ltd, Re - (1976) 1 ACLR 381
Onward Building Society, Re - [1891] 2 QB 463
Proctor v Jetway Aviation Pty Ltd - [1984] 1 NSWLR 166
Rudge v Bowman - (1868) LR 3 QB 689
Rudi's Enterprises Pty Ltd v Jay - (Court of Appeal, 3 June 1987, unreported)
Sullivan v Henderson - [1973] 1 WLR 333; [1973] 1 All ER 48
Suttor v Gundowda Pty Ltd - (1950) 81 CLR 418
Tellsa Furniture Pty Ltd (In liquidation) v Glendave Nominees Pty Ltd - (1987) 5 ACLC 662
Wiltshire Iron Co, Re; Ex parte Pearson - (1868) LR 3 Ch App 443

Hearing date: 10 February 1988
Judgment date: 25 March 1988

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The Companies (New South Wales) Code, s 368(1), provides:

"Any disposition of property of the company, other than an exempt disposition, and any transfer of shares or alteration in the status of the members of the company made after the commencement of the winding up by the court is, unless the court otherwise orders, void."

Held

"Void" in the Companies (New South Wales) Code, s 368(1), means (at least) void for all purposes related to or incidental to the administration of the winding up of the company. (215F-G, 221E-F, 229C-D)

Commercial Bank of Australia v Carruthers (1964) 6 FLR 247; 82 WN (Pt 1) (NSW) 76; [1964-5] NSWR 1197, distinguished.

Discussion by Priestley JA, of the possible meanings of "void".

Appeal

This was an appeal from the decision of Torrington DCJ, dismissing proceedings for the recovery of money based on a guarantee.

A Fennell, for the appellant.

G P McNally (solicitor), for the respondent.

Cur adv vult

25 March 1988

Order

Appeal allowed.