Gusdote v North Queensland Land Development [2012] FCA 759

In this case evidence was brought before the court indicating that land belonging to a company in liquidation was mortgaged for the benefit of third parties. At the behest of a creditor of the company, an additional and dedicated liquidator was appointed for the purpose of pursuing relief under s 588FF of the Corporations Act 2001 in respect of the mortgages. The judge noted:

Section 588FE provides that, if a company is being wound up, a transaction of the company may be voidable if it is an uncommercial transaction of the company. There is a basis for concluding that there is at least a reasonably arguable case that the mortgages to which I have referred were uncommercial transactions.

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