Re Mal Bower's Macquarie Electrical Centre Pty. Ltd. (In Liq.) and the Companies Act

[1974] 1 NSWLR 254

Re Mal Bower's Macquarie Electrical Centre Pty. Ltd. (In Liq.)
and the Companies Act

Court:
Equity Division

Judge: Street C.J. in Eq.

Subject References:
Companies
Winding up
Payments by company's bank to third parties pursuant to cheques drawn by company after winding up order made
Such payments not a "disposition of the property of the company"

Legislative References:
Companies Act, 1961 - ss. 223(2); 227(1)

Case References:
London and Mediterranean Bank, Re (Bolognesi's case). - (1870) 5 Ch. App. 567
Oriental Bank Corporation, Re. - (1884) 28 Ch. D. 634
Tilley v. Official Receiver in Bankruptcy. - (1960) 103 C.L.R. 529
Wiltshire Iron Co., Re. - (1868) 3 Ch. App. 443

Hearing date: Feb. 26; 1974
Judgment date: 3 April 1974.


SUMMONS
A bank sought a declaration that the payment by it of $13,237.71 pursuant to cheques drawn by a company in liquidation, between the date when the petition for winding up was presented and the date when the account was closed, was not a disposition of the property of the company within s. 227 (1) of the Companies Act, 1961.

I make declaration 1 (a) as asked; the respondent liquidator is to pay the costs of the bank to date; I reserve further consideration of the other matters raised in the summons and I reserve further costs.

Order accordingly.

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