Onefone Australia Pty Ltd v One.Tel Ltd [2009] NSWSC 1231

Onefone Australia Pty Ltd v One.Tel Ltd [2009] NSWSC 1231

Because the committee of inspection had expressed an inability to determine remuneration unless given detailed communications to which it was not entitled, and the evidence showed that interaction and debate had been exhausted, the s 499(3) process had broken down. A question therefore arose under s 511, and the court was satisfied that the claimed work was within the special purpose liquidator's functions and that the charge-out rates were reasonable, so the remuneration should be fixed and paid from winding up funds.

Jurisdiction
Australia
Judgment Date
16 November 2009
Procedural Posture
Application Under S 511 of the Corporations Act 2001 (cth) in a Creditors Voluntary Winding Up Concerning Liquidator's Remuneration / Renewed Application
Outcome
Application granted; question in the winding up answered by fixing the special purpose liquidator's remuneration and authorising payment from winding up funds.
Legal Topics
['creditors Voluntary Winding Up' 'committee of Inspection' "liquidator's Remuneration" 'section 511 Application' 'breakdown of Remuneration Fixing Machinery']
['corporations Law' 'insolvency Law'] ['creditors Voluntary Winding Up' 'committee of Inspection' "liquidator's Remuneration" 'section 511 Application' 'breakdown of Remuneration Fixing Machinery']

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Procedural Posture

Application Under S 511 of the Corporations Act 2001 (cth) in a Creditors Voluntary Winding Up Concerning Liquidator's Remuneration / Renewed Application

Legal Issues

  1. 1 ['Whether the remuneration-fixing machinery under s 499(3) of the Corporations Act 2001 (Cth) had broken down and proved unworkable.' "Whether a question had arisen in the winding up that the court could determine under s 511(1)(a) concerning the special purpose liquidator's remuneration." "Whether Paul Gerard Weston's remuneration for 1 May 2009 to 30 June 2009 should be fixed at $61,502.98 including GST and paid from funds available in the winding up."]

Ratio Decidendi

Because the committee of inspection had expressed an inability to determine remuneration unless given detailed communications to which it was not entitled, and the evidence showed that interaction and debate had been exhausted, the s 499(3) process had broken down. A question therefore arose under s 511, and the court was satisfied that the claimed work was within the special purpose liquidator's functions and that the charge-out rates were reasonable, so the remuneration should be fixed and paid from winding up funds.

Court Disposition

Application granted; question in the winding up answered by fixing the special purpose liquidator's remuneration and authorising payment from winding up funds.

Orders

  • ['The remuneration of Paul Gerard Weston, as special purpose liquidator of One.Tel Limited, for the period 1 May 2009 to 30 June 2009 is fixed in the sum of $61,502.98 (including GST) and Steven John Sherman and Peter John Walker, as liquidators, are justified in paying that remuneration out of funds available in...