In the matter of International Art Holdings Pty Ltd (admin apptd); International Art Holdings Pty Ltd (admin apptd) & ors v Adams & ors [2011] NSWSC 164

In the matter of International Art Holdings Pty Ltd (admin apptd); International Art Holdings Pty Ltd (admin apptd) & ors v Adams & ors [2011] NSWSC 164

It is appropriate to give judicial advice to the administrator under s 447D of the Corporations Act 2001 (Cth) concerning the manner in which various categories of artworks may be dealt with in the administration, including powers to sell unclaimed or disputed artworks after due notification and opportunity for claim or provision of security. A statutory or equitable lien is imposed over certain artworks (including those of identified owners refusing to pay a fair levy and, where appropriate, disputed or unclaimed artworks) to secure the administrator’s reasonable remuneration, costs and expenses. Such liens may, if imposed by the court, apply even to assets held as trustee or...

Parties
First Plaintiff: International Art Holdings Pty Ltd (admin apptd); Second Plaintiff: GD Rentals Pty Ltd (admin apptd); Third Plaintiff: Hunter Capital Pty Ltd (admin apptd); Fourth Plaintiff: Hunter Holdings (Australia) Pty Ltd (admin apptd); Fifth Plaintiff: Sule Arnautovic (as administrator of the First to Fourth Plaintiffs); Defendants: Lynne & Mark Adams and other persons described in Schedule 1; 30th Defendant: LE Drolz (as trustee of the Drolz Superannuation Fund); 116th Defendant: E Uri
Jurisdiction
Australia
Judgment Date
07 March 2011
Procedural Posture
Judicial Advice Application (administration of Companies) / Final Judgment
Outcome
Judicial advice and directions granted in part; administrator's entitlement to statutory or equitable lien confirmed; orders made as specified.
Legal Topics
Judicial Advice to Administrator, Statutory and Equitable Liens, Directions for Receivership, Remuneration of Administrator, Disputed Ownership of Chattels, Superannuation Fund Compliance
Corporations Equity Trusts Insolvency Superannuation Judicial Advice to Administrator Statutory and Equitable Liens Directions for Receivership +3 more

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Parties

International Art Holdings Pty Ltd (admin apptd)

First Plaintiff

GD Rentals Pty Ltd (admin apptd)

Second Plaintiff

Hunter Capital Pty Ltd (admin apptd)

Third Plaintiff

Hunter Holdings (Australia) Pty Ltd (admin apptd)

Fourth Plaintiff

Sule Arnautovic (as administrator of the First to Fourth Plaintiffs)

Fifth Plaintiff

Lynne & Mark Adams and other persons described in Schedule 1

Defendants

LE Drolz (as trustee of the Drolz Superannuation Fund)

30th Defendant

E Uri

116th Defendant

Procedural Posture

Judicial Advice Application (administration of Companies) / Final Judgment

Legal Issues

  1. 1 Whether and how judicial advice and directions should be given under ss 447D and 447A of the Corporations Act 2001 (Cth) with respect to the administration and artworks in question
  2. 2 Whether a statutory or equitable lien can or should be imposed over artworks not owned by the company but held in its possession
  3. 3 How the administrator’s remuneration, costs and expenses should be secured and apportioned in relation to the artworks, including those belonging to superannuation funds

Ratio Decidendi

It is appropriate to give judicial advice to the administrator under s 447D of the Corporations Act 2001 (Cth) concerning the manner in which various categories of artworks may be dealt with in the administration, including powers to sell unclaimed or disputed artworks after due notification and opportunity for claim or provision of security. A statutory or equitable lien is imposed over certain artworks (including those of identified owners refusing to pay a fair levy and, where appropriate, disputed or unclaimed artworks) to secure the administrator’s reasonable remuneration, costs and expenses. Such liens may, if imposed by the court, apply even to assets held as trustee or...

Court Disposition

Judicial advice and directions granted in part; administrator's entitlement to statutory or equitable lien confirmed; orders made as specified.

Orders

  • Sulé Arnautovic appointed as Receiver of artworks in Amended Schedule A (disputed artworks) with specified powers; claimants notified and required to provide security for storage/insurance or artworks sold.
  • Sulé Arnautovic has a lien for remuneration apportioned among disputed artworks; proceeds of sale held pending agreement or court determination of title.