In the matter of MJM(WA) Enterprises Pty Ltd (in liq) [2018] NSWSC 944

In the matter of MJM(WA) Enterprises Pty Ltd (in liq) [2018] NSWSC 944

Liquidator justified in treating all assets as trust assets, may pay approved remuneration for realising trust assets and general liquidation work from trust assets. Distribution among trust creditors is adjourned pending resolution about application of statutory priority under Corporations Act 2001, s 556.

Jurisdiction
Australia
Judgment Date
22 June 2018
Procedural Posture
Liquidator's Application (directions) / Principal Judgment; Orders and Adjournment
Outcome
Liquidator justified in treating company assets as trust assets; remuneration orders made; application regarding creditor distribution adjourned pending special leave application.
Legal Topics
['external Administration' 'liquidator Remuneration' 'trust Asset Distribution' 'statutory Priority of Creditors']
['corporations Law' 'trusts'] ['external Administration' 'liquidator Remuneration' 'trust Asset Distribution' 'statutory Priority of Creditors']

Case Brief

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Procedural Posture

Liquidator's Application (directions) / Principal Judgment; Orders and Adjournment

Legal Issues

  1. 1 ['Whether liquidator is justified in treating all assets as trust assets' 'Entitlement to remuneration from trust assets for realising trust assets and general liquidation work' 'Application of statutory order of priority under Corporations Act 2001, s 556 to trust assets and trust creditors']

Ratio Decidendi

Liquidator justified in treating all assets as trust assets, may pay approved remuneration for realising trust assets and general liquidation work from trust assets. Distribution among trust creditors is adjourned pending resolution about application of statutory priority under Corporations Act 2001, s 556.

Court Disposition

Liquidator justified in treating company assets as trust assets; remuneration orders made; application regarding creditor distribution adjourned pending special leave application.

Orders

  • ['Liquidator justified in treating all assets of the company as trust assets held on the trusts of MJM Enterprises Family Trust.' 'Liquidator justified in paying from trust assets his remuneration: $33,201 for administering trust assets and $4,271.50 for general liquidation work for period to 9 October 2017; up to...