In March 2012 (SARACENI -v- JONES [2012] WASCA 59 ) , the WA Court of Appeal affirmed the constitutional validity of a courts power to conduct public examinations of a corporation in receivership or where the property of the corporation is in the hands of a mortgagee.

The role of receivers, managers and mortgagees in possession was found to be analogous to liquidators and thus they were able to conduct public examinations under s596A of the Corporations Act. This was the first time that an appellate court had considered the constitutional validity of public examinations in the context where receivers were appointed or a mortgagee was in possession. 

It is hoped that unless challenged in the High Court, this case will put an end to constitutional arguments being used to challenge receivers conducting public examinations.

More info: http://www.aar.com.au/pubs/insol/foinsol28mar12.htm


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