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Morris v Sonnorm Pty Ltd[2006] QSC 116

Morris v Sonnorm Pty Ltd[2006] QSC 116




Application No 145 of 2006








DATE 07/04/2006


HIS HONOUR: The applicant in this case is the trustee in bankruptcy of the estate of Cheryl Lyn Stewart. In the course of carrying out the duties in that respect the applicant, pursuant to section 201 of the Corporations Act, became a director of the respondent company to facilitate the administration of the bankrupt estate. The sole shareholder of the company was the bankrupt.

Having made inquiries the applicant now seeks to become an administrator of the company but faces the disqualification arising pursuant to section 448C because of that directorship. The Court, however, has the power under that section to grant leave for him to undertake the administration notwithstanding his position as director of the company.

The obvious advantage in so ordering is to save the expense of the appointment of a different administrator where the company is of limited worth and where if that course was followed the assets of the company would probably be exhausted by a different administrator informing him or herself of the nature of the company and its affairs.

In those circumstances I am satisfied that there is no conflict of interest arising by reason of the applicant's directorship which would prohibit his undertaking the role of administrator of the company.

He seeks to be appointed jointly and severally with Todd William Kelly and that, it seems to me is appropriate in the circumstances.

HIS HONOUR: Mr Kelly also requires leave because of his association with the applicant and for the same reasons it is appropriate that he be granted leave also. In the case of either gentlemen I find that there is no real possibility of a conflict of interest and that the reasons behind the prohibitions identified in section 448C do not apply in the circumstances of this case.

I will make orders then as follows;

1.Pursuant to section 448C of the Corporations Act 2000 the applicant, Peter John Morris, and Todd William Kelly each have leave to be jointly and severally appointed as voluntary administrators of Sonnorm Pty Ltd.

2.The costs of and incidental to this application be costs of the administration of the said company pursuant to section 447A of the Corporations Act.


Editorial Notes

  • Published Case Name:

    Peter John Morris v Sonnorm Pty Ltd

  • Shortened Case Name:

    Morris v Sonnorm Pty Ltd

  • MNC:

    [2006] QSC 116

  • Court:


  • Judge(s):

    Jones J

  • Date:

    07 Apr 2006

Appeal Status

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