In the matter of FAI Leasing Finance Pty Limited (in liquidation); In the matter of FAI Home Security Holdings Pty Limited (in liquidation) [2015] NSWSC 2150

In the matter of FAI Leasing Finance Pty Limited (in liquidation); In the matter of FAI Home Security Holdings Pty Limited (in liquidation) [2015] NSWSC 2150

The remuneration sought was plainly reasonable having regard to the recoveries, the complexities of the administrations and the period for which the liquidations had been on foot. Because there were no external creditors and the relevant creditors and contributories were HIH Group companies of which the applicants were also liquidators, convening creditors' meetings would be inappropriate and essentially procedural; the liquidators had acted honestly and it was just and equitable to make orders under s 1322. It was also appropriate to dispense with service under r 7.5(6), and ASIC did not oppose destruction of the companies' books after the specified period.

Jurisdiction
Australia
Judgment Date
22 October 2015
Procedural Posture
Corporations Winding Up Application / Application by Liquidators for Approval of Remuneration, Release, Deregistration, and Permission to Destroy Books and Records
Outcome
Orders made approving liquidators' remuneration and for the destruction of the companies' books and records.
Legal Topics
['court Ordered Winding Up' "liquidators' Remuneration" 'approval by Creditors' 'procedural Irregularity' 'destruction of Company Books and Records' 'release of Liquidators' 'deregistration']
['corporations' 'insolvency'] ['court Ordered Winding Up' "liquidators' Remuneration" 'approval by Creditors' 'procedural Irregularity' 'destruction of Company Books and Records' 'release of Liquidators' 'deregistration']

Case Brief

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Procedural Posture

Corporations Winding Up Application / Application by Liquidators for Approval of Remuneration, Release, Deregistration, and Permission to Destroy Books and Records

Legal Issues

  1. 1 ["Whether the liquidators' remuneration sought was reasonable and should be approved." "Whether the failure to convene a creditors' meeting to approve remuneration in court-ordered windings up should be declared not to invalidate the approval of remuneration." 'Whether service of the application for release on each creditor and contributory should be dispensed with.' "Whether permission should be given to destroy the companies' books and records."]

Ratio Decidendi

The remuneration sought was plainly reasonable having regard to the recoveries, the complexities of the administrations and the period for which the liquidations had been on foot. Because there were no external creditors and the relevant creditors and contributories were HIH Group companies of which the applicants were also liquidators, convening creditors' meetings would be inappropriate and essentially procedural; the liquidators had acted honestly and it was just and equitable to make orders under s 1322. It was also appropriate to dispense with service under r 7.5(6), and ASIC did not oppose destruction of the companies' books after the specified period.

Court Disposition

Orders made approving liquidators' remuneration and for the destruction of the companies' books and records.

Orders

  • ['Orders made in each matter as set out in the document entitled "Order" signed, sealed and dated 22 October 2015.' "Approval of the liquidators' remuneration." "Order under Corporations Act 2001, s 1322 that failure to convene creditors' meetings did not invalidate approval of remuneration." 'Dispensation with the...