Landmark Ruling in State Road Constructions Liquidation: Court Affirms Director’s Personal Liability
Melbourne, Australia – August 26, 2025 – In a significant development stemming from the liquidation of State Road Constructions, the Federal Court of Australia has delivered a decisive ruling, affirming the personal liability of a former director, Mr. Joseph Ferrazzano, in his dealings with the company. The judgment, delivered today in the matter of Albarran, in his capacity as liquidator of State Road Constructions (in liquidation) v Ferrazzano (No 3) [2025] FCA 1026, represents a crucial step forward for the liquidator in recovering assets for creditors.
The case, presided over by Justice __, has explored complex issues surrounding director conduct and company obligations during the challenging period leading up to and during the liquidation of State Road Constructions. Today’s judgment, the third in a series of proceedings related to this liquidation, specifically addresses the personal liability of Mr. Ferrazzano.
While the detailed reasons for the judgment are still being made publicly available, it is understood that the Court found Mr. Ferrazzano personally liable for actions or inactions that prejudiced the company’s creditors. This could encompass a range of potential breaches of director duties, such as trading whilst insolvent, improper use of company funds, or failure to comply with statutory obligations.
The liquidator, Mr. Andrew Albarran, has been diligently working to unravel the financial affairs of State Road Constructions and to maximize returns for those to whom the company owed debts. This successful outcome against Mr. Ferrazzano is a testament to the persistent efforts of the liquidator and underscores the importance of robust corporate governance and accountability for company directors.
This ruling sends a clear message to directors across the country about their personal responsibilities when managing companies, especially in circumstances where financial distress is present. It reinforces the principle that directors cannot shield themselves from liability through the corporate veil when their conduct falls short of legal and ethical standards.
The ramifications of this judgment are likely to be felt by creditors of State Road Constructions, who will now have a clearer path towards potential recovery. Further details regarding the specific findings of the Court and the quantum of liability are anticipated in the full judgment.
This is a developing story, and further updates will be provided as more information becomes available.
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judgments.fedcourt.gov.au published ‘Albarran, in his capacity as liquidator of State Road Constructions (in liquidation) v Ferrazzano (No 3) [2025] FCA 1026’ at 2025-08-26 16:13. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.