Who is more unreasonable?

A takeaway from the Full Federal Court’s decision in CEG Direct Securities Pty Ltd v Cooper as liquidator of Runtong Investment and Development Pty Ltd (in liq) [2025] FCAFC 47 is that the liquidator failed to establish the transaction was ‘unreasonable’ as he did not explain the absence of using his coercive powers (compulsory notices and/or examinations).

That proposition alone creates another costly barrier to bringing unreasonable director related transaction claims.

However, in addition, the defendant directors gave no evidence in the case and relied on a solicitor’s affidavit and expert report. Further, (at paragraph 159 of the majority’s reasons) the director of the mortgagee was deceased and all directors of the defendant and relevant directors of the related companies were no longer in Australia at the time of the trial.

Was it reasonable to ask the liquidator to prepare and send notices or summonses when there was no one to reply?