Deppeler, in the matter of Old Port Road Pty Ltd (in liq) [2021] FCA 980

Deppeler, in the matter of Old Port Road Pty Ltd (in liq) [2021] FCA 980

Given the company acted only as trustee, now holds assets as bare trustee, and no replacement trustee has been appointed, the court confers power on liquidators under s 63(1) Trustee Act and confirms entitlement to remuneration and expenses from trust property to facilitate winding up.

Parties
First Plaintiff (liquidators): Nathan Lee Deppeler and Ivan Glavas; Second Plaintiff (company): Old Port Road Pty Ltd (in liquidation) (ACN 102 704 343)
Jurisdiction
Australia
Judgment Date
17 August 2021
Procedural Posture
Corporations and Corporate Insolvency / Application for Court Directions/orders Facilitating Liquidation and Dealing With Trust Assets
Outcome
Orders largely in the form sought by the Liquidators granted.
Legal Topics
Corporate Insolvency, Liquidators' Powers and Duties, Trustee Company Asset Distribution, Remuneration of Liquidators, Sale of Trust Assets, Bare Trusteeship
Corporations Law Trusts Law Insolvency Corporate Insolvency Liquidators' Powers and Duties Trustee Company Asset Distribution Remuneration of Liquidators Sale of Trust Assets +1 more

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Parties

Nathan Lee Deppeler and Ivan Glavas

First Plaintiff (liquidators)

Old Port Road Pty Ltd (in liquidation) (ACN 102 704 343)

Second Plaintiff (company)

Procedural Posture

Corporations and Corporate Insolvency / Application for Court Directions/orders Facilitating Liquidation and Dealing With Trust Assets

Legal Issues

  1. 1 Whether liquidators can deal with and distribute assets held by company as bare trustee after removal as trustee
  2. 2 Whether court should confer power to deal with trust assets under s 63 Trustee Act and s 90-15 Insolvency Practice Schedule
  3. 3 Whether liquidators are entitled to remuneration and expenses from trust property

Ratio Decidendi

Given the company acted only as trustee, now holds assets as bare trustee, and no replacement trustee has been appointed, the court confers power on liquidators under s 63(1) Trustee Act and confirms entitlement to remuneration and expenses from trust property to facilitate winding up.

Court Disposition

Orders largely in the form sought by the Liquidators granted.

Orders

  • Liquidators permitted to appear/make submissions by video/audio link per s 47B Federal Court of Australia Act 1976
  • Public excluded except by procedure allowing observation