Phoenix Institute of Australia Pty Ltd (in liq), in the matter of Phoenix Institute of Australia Pty Ltd (in liq) [2021] FCA 1203

Phoenix Institute of Australia Pty Ltd (in liq), in the matter of Phoenix Institute of Australia Pty Ltd (in liq) [2021] FCA 1203

The remuneration was approved because the SPLs' work was necessary to comply with the First and Second Funding Agreements and the Further Scope of Works, was properly performed, delegated to persons of suitable seniority, undertaken in a short timeframe in relatively complex circumstances involving substantial Commonwealth funding and impending limitation issues, and was proportionate notwithstanding that no recoveries resulted. Cessation of appointment was appropriate because the Initial and Further Scope of Works had been performed, the Second Funding Agreement had been terminated, no further funding was in place, and only confined administrative tasks remained before lodging ASIC...

Jurisdiction
Australia
Judgment Date
06 October 2021
Procedural Posture
Application Under Ss 60 10 and 90 15 of the Insolvency Practice Schedule (corporations) for Approval of Remuneration of Special Purpose Liquidators, Cessation of Appointment and Ancillary Orders / Originating Application; Final Orders
Outcome
Application successful; orders made substantially in the form sought by the special purpose liquidators.
Legal Topics
['approval of External Administrator Remuneration' 'special Purpose Liquidators' 'cessation of Appointment of External Administrators' 'notice Requirements Under Federal Court (corporations) Rules 2000 (cth)' 'vet FEE HELP Funding Investigations']
['corporations' 'corporate Insolvency'] ['approval of External Administrator Remuneration' 'special Purpose Liquidators' 'cessation of Appointment of External Administrators' 'notice Requirements Under Federal Court (corporations) Rules 2000 (cth)' 'vet FEE HELP Funding Investigations']

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Procedural Posture

Application Under Ss 60 10 and 90 15 of the Insolvency Practice Schedule (corporations) for Approval of Remuneration of Special Purpose Liquidators, Cessation of Appointment and Ancillary Orders / Originating Application; Final Orders

Legal Issues

  1. 1 ["Whether the special purpose liquidators' remuneration for work performed from 28 May 2021 to the conclusion of their appointment was for necessary work properly performed and was fair and reasonable." 'Whether the special purpose liquidators should cease their appointment after completing remaining administrative tasks and lodging ASIC forms.' 'Whether the requirement under r 9.2(2) of the Federal Court (Corporations) Rules 2000 (Cth) to notify certain parties should be dispensed with to the extent not already complied with.']

Ratio Decidendi

The remuneration was approved because the SPLs' work was necessary to comply with the First and Second Funding Agreements and the Further Scope of Works, was properly performed, delegated to persons of suitable seniority, undertaken in a short timeframe in relatively complex circumstances involving substantial Commonwealth funding and impending limitation issues, and was proportionate notwithstanding that no recoveries resulted. Cessation of appointment was appropriate because the Initial and Further Scope of Works had been performed, the Second Funding Agreement had been terminated, no further funding was in place, and only confined administrative tasks remained before lodging ASIC...

Court Disposition

Application successful; orders made substantially in the form sought by the special purpose liquidators.

Orders

  • ['Pursuant to section 60-10(1)(c) of the Insolvency Practice Schedule (Corporations) being Schedule 2 to the Corporations Act 2001 (Cth), the second and third plaintiffs are entitled to receive remuneration of $89,930 excluding GST for work performed in the liquidation of Phoenix Institute of Australia Pty Ltd (in...