Australian Institute of Professional Photography - Case Update

A long-standing association representing Australian photographers is set to make a triumphant comeback after collapsing into liquidation in 2021.

The predecessor to the Australian Institute of Professional Photography (AIPP) was founded in 1944 by a group of photographers from various state associations to serve the interests of photographers nation-wide. Over time, the association grew to provide professional development and other services to thousands of members.

The AIPP entered voluntary administration and then liquidation in late 2021. Mathew Gollant of CJG Advisory was appointed liquidator. of At the time, the association stated that it had been in steady decline since before 2018, but that it had seen a “devastating reduction of membership revenue due to the COVID-19 pandemic”, with over 700 members unable to meet their fee commitments at that time. This led to a shortfall of funding to keep AIPP operational — a downward trend that had been observed for the five year period preceding the administration. In light of this, the board formed the view that the company was insolvent or on the brink of insolvency.

In April 2022, the debts owed by the association to its creditors were paid in full. Contributions made by the association’s members and member fees were also refunded prior to the liquidator’s appointment. By the end of the liquidation, the association had approximately $78,827 in surplus funds. The liquidator brought an application for special leave to distribute the surplus and resign as liquidator.

This application was met with an interlocutory application by Malcolm Mathieson and Sheree Roberts representing a group of former members, who sought to terminate the winding-up, arguing that AIPP should be revived rather than dissolved.

The Court ultimately agreed with the members and made orders terminating the winding-up upon the payment of the liquidator’s outstanding fees. The members had presented a revised budget demonstrating that AIPP could sustain operations with volunteer support and conservative financial management. The Court found that the association was solvent and had reasonable prospects of remaining so, with over 600 former members expressing interest in rejoining and 180 volunteering to assist. Given this evidence, the Court determined that terminating the winding-up would not be contrary to commercial morality or the public interest.

The Court also rejected arguments that the liquidation should proceed due to its near completion, emphasizing that completion alone is not a decisive factor. It noted that concerns regarding governance were unsubstantiated, and no evidence suggested AIPP had engaged in misconduct or financial mismanagement.

The Court appointed interim directors and directed that a general meeting be convened within 120 days to reconstitute the board. The surplus will remain with the company.

Read the decision here.

Professionals involved:

• Counsel for the liquidator: John Sinisgalli

• Solicitors for the liquidator: Sinisgalli Foster Legal

• Counsel for the Image Makers Association Australia: James O’Regan of Hemmant's List

• Solicitors for the Image Makers Association Australia: Banki Haddock Fiora