Case review: Strawbridge, in the matter of Retail Adventures Pty Limited (Administrators Appointed) v Retail Adventures Pty Limited (Administrators Appointed) (No 2) [2012] FCA 1368
The Federal Court has utilised its discretionary power under section 447A of theCorporations Act 2001 (Cth) (Act) to limit the scope of an administrator’s general liability for debts incurred in the course of the administration arising under section 443A(1) of the Act.
Background to the administrators’ application
The administrators of Retail Adventures Pty Ltd (Company), one of Australia’s largest discount variety operators, entered into a licence agreement under which they had authorised a related entity of the Company, DSG Holdings Australia (DSG), to continue trading the business. The parties subsequently agreed to amend their agreement in order to limit the personal liability of the administrators to DSG under the licence agreement. It was the intention of the parties that the administrators would not incur personal liability to any party under the licence agreement. More…