The Federal Court of Australia has delivered an important decision which centred on the application by a liquidator to assign causes of action. Cant, In the matter of Novaline Pty Ltd (in Liq)  FCA 898 dealt with an application by the liquidator of Novaline Pty Ltd for an order under s479(3) of the Corporations Act 2001 (Cth) that the liquidator and the company could enter into a deed of assignment of certain causes of action to a director of the company.
The court held that the liquidator was able to assign the causes of action, including those arising under statute, to the director, and that the liquidator and the company were entitled to enter into the deed of assignment in respect of the causes of action.
This case confirms that liquidators have the power to assign statutory causes of action arising under ss180 to 184 of the Act under the specific power conferred by s477(2)(c) of the Act. It also provides some guidance as to the requirements for identification of the subject matter of an agreement which the court is asked to approve under s477(2B).