Title

Injunctions and damages under s1324 of the Corporations Act: Will McCracken v Phoenix Constructions revive the narrow approach?

Date of this Version

1-1-2014

Document Type

Journal Article

Publication Details

Citation only

Baumfield, V. S. (2014). Injunctions and damages under s1324 of the Corporations Act: Will McCracken v Phoenix Constructions revive the narrow approach? Company and Securities Law Journal, 32, 453-472.

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Copyright © 2014 Thomson Reuters (Professional) Australia Limited

2014 HERDC submission

ISSN

0729-2775

Abstract

Is s 1324(10) of the Corporations Act 2001 (Cth) the corporate lawyer’s secret weapon or a damp squib? On its face, s 1324(10) would appear to allow a court to award damages to any person with standing to apply for an injunction under the Act. There has been some debate, however, about the extent to which s 1324(10) must be limited by its apparent contradiction with other portions of the Act. This article examines McCracken v Phoenix Constructions (Qld) Pty Ltd [2013] 2 Qd R 27; [2012] QCA 129 in light of the previous case law interpreting s 1324 to see what opening remains for affected parties, in particular creditors, to access damages or injunctions under s 1324. The article concludes that while McCracken presents compelling reasons for not awarding s 1324(10) damages to creditors, arguments remain in favour of a broad interpretation of s 1324 for creditors in certain scenarios.

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This document has been peer reviewed.