611 Pty Ltd (in liq), in the matter of 611 Pty Ltd (in liq) [2018] FCA 2028

611 Pty Ltd (in liq), in the matter of 611 Pty Ltd (in liq) [2018] FCA 2028

Due to uncertainty over the capacity in which 611 Pty Limited holds its assets and doubts as to the sufficiency of a liquidator's powers under s 477(2) of the Corporations Act to deal with trust property, the Court appointed the liquidators as receivers of the trust assets under s 57 of the Federal Court of Australia Act, empowering them under s 420 of the Corporations Act to sell the assets for the benefit of creditors.

Jurisdiction
Australia
Judgment Date
14 December 2018
Procedural Posture
Application by Liquidators for Appointment as Receivers / Judgment and Orders on Application
Outcome
Application granted. Orders made appointing the second and third plaintiffs as receivers of the trust assets, with related directions as to powers and retention of proceeds.
Legal Topics
['appointment of Receivers' 'liquidation of Trustee Company' 'corporate Insolvency' 'trust Property Administration']
['corporations Law' 'insolvency Law' 'equity and Trusts'] ['appointment of Receivers' 'liquidation of Trustee Company' 'corporate Insolvency' 'trust Property Administration']

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Procedural Posture

Application by Liquidators for Appointment as Receivers / Judgment and Orders on Application

Legal Issues

  1. 1 ['Whether liquidators should be appointed as receivers of trust property under s 57 of the Federal Court of Australia Act 1976 (Cth)' "Whether the liquidator's powers under s 477(2) of the Corporations Act 2001 (Cth) extend to trust property" 'Whether retrospective appointment as receivers is appropriate to facilitate asset sale']

Ratio Decidendi

Due to uncertainty over the capacity in which 611 Pty Limited holds its assets and doubts as to the sufficiency of a liquidator's powers under s 477(2) of the Corporations Act to deal with trust property, the Court appointed the liquidators as receivers of the trust assets under s 57 of the Federal Court of Australia Act, empowering them under s 420 of the Corporations Act to sell the assets for the benefit of creditors.

Court Disposition

Application granted. Orders made appointing the second and third plaintiffs as receivers of the trust assets, with related directions as to powers and retention of proceeds.

Orders

  • ['The second and third plaintiffs are appointed as receivers of the trust property owned by the first plaintiff as trustee for the Zumbo Trust, without security, effective from 22 July 2018.' 'Appointment is without prejudice to the right of any creditor to raise questions as to remuneration of the second and third...