Lock, in the matter of Cedenco JV Australia Pty Ltd (in liq) (No 3) [2019] FCA 879

Lock, in the matter of Cedenco JV Australia Pty Ltd (in liq) (No 3) [2019] FCA 879

The court fixed the plaintiffs' remuneration as administrators and liquidators at specified reduced amounts per company, found that no further reduction to the 'Other work' category was warranted after global discounts and a further $100,000 deduction, ordered repayment with interest (finding power under s 23 of the Federal Court of Australia Act and as an incident of fixing remuneration under the Corporations Act), and required the plaintiffs to bear their own costs and pay ASIC's costs personally.

Jurisdiction
Australia
Judgment Date
12 June 2019
Procedural Posture
Remuneration Application (corporate Insolvency) / Judgment After Hearing on Fixing of Remuneration, Interest, and Costs
Outcome
Application substantially granted with modifications (remuneration fixed at reduced amounts; repayment and costs orders as per reasons).
Legal Topics
['corporate Insolvency' 'remuneration of Administrators and Liquidators' 'interest on Repayment of Remuneration' 'court Costs and Indemnity']
['corporations'] ['corporate Insolvency' 'remuneration of Administrators and Liquidators' 'interest on Repayment of Remuneration' 'court Costs and Indemnity']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Remuneration Application (corporate Insolvency) / Judgment After Hearing on Fixing of Remuneration, Interest, and Costs

Legal Issues

  1. 1 ['What remuneration should be fixed for the plaintiffs as administrators and liquidators under s 449E(1) and s 511 of the Corporations Act 2001 (Cth)?' "Should any further reduction be applied to the 'Other work' category in the remuneration claim?" 'Should the plaintiffs pay interest on remuneration amounts to be repaid?' "Do the plaintiffs bear their own costs and pay the intervener's costs, rather than having indemnity from the assets of the companies?"]

Ratio Decidendi

The court fixed the plaintiffs' remuneration as administrators and liquidators at specified reduced amounts per company, found that no further reduction to the 'Other work' category was warranted after global discounts and a further $100,000 deduction, ordered repayment with interest (finding power under s 23 of the Federal Court of Australia Act and as an incident of fixing remuneration under the Corporations Act), and required the plaintiffs to bear their own costs and pay ASIC's costs personally.

Court Disposition

Application substantially granted with modifications (remuneration fixed at reduced amounts; repayment and costs orders as per reasons).

Orders

  • ['Remuneration of the plaintiffs as administrators and liquidators of Cedenco JV Australia Pty Ltd, SK Foods Australia Pty Ltd, and SS Farms Australia Pty Ltd fixed in amounts specified per company and period.' 'Plaintiffs to repay companies amounts drawn in excess of amounts now approved, plus interest at court...