Connelly (liquidator) v Papadopoulos, in the matter of TSK QLD Pty Ltd (in liq) [2024] FCA 888 is a significant win for the liquidators, recovering assets stripped from the company before liquidation by related parties and an advisor who devised the scheme. It has been written up as the first significant win for creditor defeating dispositions which were added to the Corporations Act in 2020 and the first time orders have been made against an advisor.
However, it appears the advisor accepted it had breached the Act and the parties argued only about the amount of damages. Therefore, the creditor defeating disposition sections 588GAA to 588GAC do not get a single mention in the reasons for decision or orders.
Despite the success, do we know any more about whether these sections are effective when actively defended?
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