In the matter of EMA Consulting Pty Ltd (in liquidation) [2018] NSWSC 1993

In the matter of EMA Consulting Pty Ltd (in liquidation) [2018] NSWSC 1993

Applicants are justified in acting on the remuneration approvals previously given by creditors and in paying such remuneration from trust or company funds, given that procedural anomalies in credit approval process do not affect validity and proportionality is satisfied by the scale of recoveries to work done.

Jurisdiction
Australia
Judgment Date
23 November 2018
Procedural Posture
Corporations – External Administration Application for Judicial Directions / Interlocutory Application for Directions and Remuneration Approval
Outcome
Directions and orders made in favour of the Applicants.
Legal Topics
['external Administration' 'remuneration of Administrators and Liquidators' 'recovery From Trust Assets']
['corporations Law' 'equity'] ['external Administration' 'remuneration of Administrators and Liquidators' 'recovery From Trust Assets']

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Procedural Posture

Corporations – External Administration Application for Judicial Directions / Interlocutory Application for Directions and Remuneration Approval

Legal Issues

  1. 1 ['Whether voluntary administrators and liquidators are justified in acting in accordance with remuneration approvals given by creditors' 'Whether the applicants are justified in paying the approved remuneration from funds retained as liquidators or receivers of the trust' 'Whether remuneration may be recovered from trust assets']

Ratio Decidendi

Applicants are justified in acting on the remuneration approvals previously given by creditors and in paying such remuneration from trust or company funds, given that procedural anomalies in credit approval process do not affect validity and proportionality is satisfied by the scale of recoveries to work done.

Court Disposition

Directions and orders made in favour of the Applicants.

Orders

  • ['Direct that the Applicants would be justified in relying on creditor approval previously given for their remuneration as voluntary administrators during the period 30 September 2015 to 7 January 2016 ($85,352.50 exclusive of GST) and as liquidators during the period 7 January 2016 to 31 January 2018 ($132,912...