Tonks, in the matter of PWG Holdings Pty Ltd (in liquidation) (No 2) [2017] FCA 893

Tonks, in the matter of PWG Holdings Pty Ltd (in liquidation) (No 2) [2017] FCA 893

The Court approved the remuneration because the affidavit evidence and itemised time records established that the work performed by the plaintiffs and their staff in selling the two Trust properties and administering the Trust assets was reasonably necessary, performed professionally and efficiently, and charged at amounts that were fair and reasonable; the total remuneration was less than 1% of the realised value of the properties, the liquidators' remuneration was within amounts approved by creditors, and no creditor opposed the application. The Court directed distribution of the Trust assets first to approved remuneration and then to admitted creditors because there was no practical...

Jurisdiction
Australia
Judgment Date
04 August 2017
Procedural Posture
Corporations; Creditors' Voluntary Winding Up Involving Company in Liquidation as Bare Trustee of Trust Assets / Interlocutory Process Seeking Directions, Orders and Declarations Concerning Remuneration, Distribution of Trust Assets, Dispensation With Final Accounts, Discharge of Receivers and Managers, and Costs
Outcome
Orders and directions made substantially approving remuneration, distribution, discharge, dispensation with final accounts, and costs in the winding up.
Legal Topics
["creditors' Voluntary Winding Up" "liquidators' Remuneration" "receivers and Managers' Remuneration" 'bare Trustee of Trust Assets' 'distribution of Trust Assets' 'dispensation With Passing Final Accounts' 'discharge of Receivers and Managers']
['corporations' 'corporate Insolvency' 'trusts' 'equity'] ["creditors' Voluntary Winding Up" "liquidators' Remuneration" "receivers and Managers' Remuneration" 'bare Trustee of Trust Assets' 'distribution of Trust Assets' 'dispensation With Passing Final Accounts' 'discharge of Receivers and Managers']

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Procedural Posture

Corporations; Creditors' Voluntary Winding Up Involving Company in Liquidation as Bare Trustee of Trust Assets / Interlocutory Process Seeking Directions, Orders and Declarations Concerning Remuneration, Distribution of Trust Assets, Dispensation With Final Accounts, Discharge of Receivers and Managers, and Costs

Legal Issues

  1. 1 ["Whether the plaintiffs' remuneration as liquidators in dealing with trust assets should be approved by the Court." "Whether the plaintiffs' remuneration as receivers and managers of the Trust assets should be approved by the Court." 'Whether the plaintiffs would be justified in distributing the Trust assets first in payment of approved remuneration and then among admitted creditors of the company acting as trustee of the Trust, pari passu.' 'Whether the requirement to pass final accounts in the receivership should be dispensed with.' 'Whether the plaintiffs should be discharged as receivers and managers of the Trust assets.' 'Whether the costs of the proceeding should be costs in the winding up of the company.']

Ratio Decidendi

The Court approved the remuneration because the affidavit evidence and itemised time records established that the work performed by the plaintiffs and their staff in selling the two Trust properties and administering the Trust assets was reasonably necessary, performed professionally and efficiently, and charged at amounts that were fair and reasonable; the total remuneration was less than 1% of the realised value of the properties, the liquidators' remuneration was within amounts approved by creditors, and no creditor opposed the application. The Court directed distribution of the Trust assets first to approved remuneration and then to admitted creditors because there was no practical...

Court Disposition

Orders and directions made substantially approving remuneration, distribution, discharge, dispensation with final accounts, and costs in the winding up.

Orders

  • ['The plaintiffs be allowed remuneration in respect of their administration as receivers and managers of the property, assets and undertaking of the 262 Pennant Hills Road Unit Trust in the sum of $45,910.00 plus GST.' 'In dealing with Lots 18 and 19 in Deposited Plan 836230 in the period 24 November 2016 to 26...