Raised - Case Update

The Federal Court of Australia has issued an arrest warrant against a company’s former officer for failing to appear at a Court-ordered examination under section 596A of the Corporations Act 2001.

The application was brought by Henry McKenna of Vincents, the liquidator of Raised Pty Ltd, against Khaled Ayache, a former officer of the company. Mr Ayache had been properly served with a summons via substituted service, but failed to produce documents or attend his examination on 2 June 2025.

The Court found that the requirements for issuing a warrant under rule 11.10 of the Federal Court (Corporations) Rules 2000 (Cth) were met: Mr Ayache was summoned, failed to attend, and did so without reasonable cause. The Court was satisfied that Mr Ayache was aware of the summons, and in the absence of any explanation, inferred that his non-attendance was unjustified.

The Court also considered the discretionary factors supporting the arrest warrant, including the importance of securing compliance with court orders and the lack of evidence of undue burden or oppression. Although the liquidator had not taken further steps to contact Mr Ayache directly, the Court found that the substituted service and subsequent non-responsiveness justified compulsion through arrest.

The warrant was issued but stayed for seven days, allowing Mr Ayache a final opportunity to voluntarily appear or explain his absence. The issue of costs was reserved, as the matter was heard ex parte and Mr Ayache had not been notified of the possibility of an adverse costs order.

Read the decision HERE.

Professionals involved:

• Joshua Raftery of 13 Wentworth Chambers (instructed by Somerset Ryckmans) for the liquidator