Shannon (in his capacity as receiver and manager of North East Wiradjuri Co Limited) v North East Wiradjuri Co Limited (No 4) [2012] FCA 836

Shannon (in his capacity as receiver and manager of North East Wiradjuri Co Limited) v North East Wiradjuri Co Limited (No 4) [2012] FCA 836

The remuneration should be fixed under s 425(1) of the Corporations Act 2001 (Cth) because the substantive and procedural requirements were met and the relevant solicitors did not oppose the application. The receiverships should be terminated under s 434B(1) because the objectives of the receivers' appointment, namely proper accountable governance pending resolution of the dispute about the proper members and directors, had been achieved; no current claims remained unsatisfied or unresolved except the receivers' own remuneration, which they were prepared to await payment of, and the companies were expected to receive sufficient funds.

Jurisdiction
Australia
Judgment Date
02 August 2012
Procedural Posture
Application for Receivers' Remuneration and Termination of Receiverships / Orders Made on Application
Outcome
Application granted; remuneration fixed and receiverships terminated.
Legal Topics
['fixing Remuneration of Receivers' 'termination of Receiverships' 'court Appointed Receivers' 'receivers and Managers']
['corporations Law' 'insolvency and Receivership'] ['fixing Remuneration of Receivers' 'termination of Receiverships' 'court Appointed Receivers' 'receivers and Managers']

Case Brief

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Procedural Posture

Application for Receivers' Remuneration and Termination of Receiverships / Orders Made on Application

Legal Issues

  1. 1 ["Whether the Court should fix the applicants' remuneration for the period 1 October 2011 to 24 June 2012 in the amount of $92,318.60 including GST." 'Whether the receiverships of North East Wiradjuri Co Limited and North Eastern Wiradjuri Community Fund Limited should be terminated and the applicants retire as receivers and managers forthwith.']

Ratio Decidendi

The remuneration should be fixed under s 425(1) of the Corporations Act 2001 (Cth) because the substantive and procedural requirements were met and the relevant solicitors did not oppose the application. The receiverships should be terminated under s 434B(1) because the objectives of the receivers' appointment, namely proper accountable governance pending resolution of the dispute about the proper members and directors, had been achieved; no current claims remained unsatisfied or unresolved except the receivers' own remuneration, which they were prepared to await payment of, and the companies were expected to receive sufficient funds.

Court Disposition

Application granted; remuneration fixed and receiverships terminated.

Orders

  • ['Remuneration of the applicants for the period 1 October 2011 to 24 June 2012 be fixed in the amount of $92,318.60 including GST.' 'The Respondents be jointly and severally liable to pay to the Applicants the amount stated in order 1.' 'The receiverships of the First and Second Respondent be terminated and the...