In the matter of Double Bay Property Management Pty Ltd (in liq) [2021] NSWSC 996

In the matter of Double Bay Property Management Pty Ltd (in liq) [2021] NSWSC 996

The Court approved the remuneration because the work was necessary, performed efficiently by appropriately senior personnel, fair and reasonable in amount, and substantially discounted, with no opposition from creditors or trust stakeholders. The remaining trust assets could be applied to admitted priority employee creditors under the Corporations Act priority regime, and the receivers should be discharged and released after filing their final account because the trust property had been realised, distribution was to occur, and no claim or default was foreshadowed apart from the remedied mistaken drawing of remuneration.

Jurisdiction
Australia
Judgment Date
19 July 2021
Procedural Posture
Interlocutory Process in Corporations/receivership Proceedings / Application for Approval of Remuneration, Directions for Distribution to Priority Creditors, and Discharge and Release of Receivers and Managers
Outcome
Application granted; orders made approving remuneration, authorising payment from trust assets, directing payment to priority creditors, and providing for discharge and release of the receivers after filing of their final account.
Legal Topics
["approval of Receivers' and Liquidators' Remuneration" 'payment of Remuneration From Trust Assets Nunc Pro Tunc' 'priority Employee Creditors' 'distribution of Assets of Corporate Trustee' 'discharge and Release of Court Appointed Receivers']
['corporations' 'insolvency' 'equity' 'trusts' 'receivership'] ["approval of Receivers' and Liquidators' Remuneration" 'payment of Remuneration From Trust Assets Nunc Pro Tunc' 'priority Employee Creditors' 'distribution of Assets of Corporate Trustee' 'discharge and Release of Court Appointed Receivers']

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Procedural Posture

Interlocutory Process in Corporations/receivership Proceedings / Application for Approval of Remuneration, Directions for Distribution to Priority Creditors, and Discharge and Release of Receivers and Managers

Legal Issues

  1. 1 ['Whether the remuneration of the applicants as receivers and managers of trust property and as liquidators of the Company should be approved, including retrospectively for amounts already drawn from trust assets.' 'Whether remaining trust assets should be distributed to admitted priority creditors of the Company in accordance with the Corporations Act 2001 (Cth) priority regime.' 'Whether the applicants should be discharged and released as receivers and managers once their final account is filed.']

Ratio Decidendi

The Court approved the remuneration because the work was necessary, performed efficiently by appropriately senior personnel, fair and reasonable in amount, and substantially discounted, with no opposition from creditors or trust stakeholders. The remaining trust assets could be applied to admitted priority employee creditors under the Corporations Act priority regime, and the receivers should be discharged and released after filing their final account because the trust property had been realised, distribution was to occur, and no claim or default was foreshadowed apart from the remedied mistaken drawing of remuneration.

Court Disposition

Application granted; orders made approving remuneration, authorising payment from trust assets, directing payment to priority creditors, and providing for discharge and release of the receivers after filing of their final account.

Orders

  • ['The remuneration of Jonathan Philip Henry and Katherine Sozou, in their capacity as receivers and managers of the property, assets and undertakings of the Property Management Unit Trust and as liquidators of Double Bay Property Management Pty Ltd (In Liquidation), be fixed for the period from 5 February 2020 to 22...