The NSW Supreme Court held that the continued operation of the ATO notice would undermine the objects of Part 5.3A Corporations Act 2001 (Cth) (‘the Act’) by diverting working capital which was needed to continue trading and pursue either a deed of company arrangement (DOCA) or a going concern sale in of the company.
The court described the case for relief under s447A of the Act as “powerful” in a decision which has significant implications for administrators facing demands without needing to prove any enforcement action under section 440B of the Act.
How the case came about
Hudson Global Resources (Hudson) was a national recruitment and labour hire business. It was was funded through an invoice financing facility with…