Ruhe, in the matter of Solar and Storage Australia Pty Ltd [2024] FCA 1155

Ruhe, in the matter of Solar and Storage Australia Pty Ltd [2024] FCA 1155

Where a company acted solely as trustee and all creditors are trust creditors, it is appropriate to order the sale of trust assets and the application of proceeds to satisfy trust creditor claims, and for the liquidator to be appointed as receiver and excused under s 1318 for relevant acts or omissions.

Parties
First Plaintiff: Alice Fay Ruhe (in her capacity as liquidator of Solar and Storage Australia Pty Ltd ACN 627 639 605 (in liquidation)); Second Plaintiff: Solar and Storage Australia Pty Ltd ACN 627 639 605 (in liquidation)
Jurisdiction
Australia
Judgment Date
01 October 2024
Procedural Posture
Corporations – Insolvency – Liquidator’s Application / Application for Directions and Orders Concerning Realisation of Trust Assets
Outcome
Orders made as sought by the liquidator
Legal Topics
Liquidation of Trustee Company, Indemnity and Priority for Trust Creditors, Powers of Liquidator in Respect of Trust Property
Corporations Law Insolvency Liquidation of Trustee Company Indemnity and Priority for Trust Creditors Powers of Liquidator in Respect of Trust Property

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Parties

Alice Fay Ruhe (in her capacity as liquidator of Solar and Storage Australia Pty Ltd ACN 627 639 605 (in liquidation))

First Plaintiff

Solar and Storage Australia Pty Ltd ACN 627 639 605 (in liquidation)

Second Plaintiff

Procedural Posture

Corporations – Insolvency – Liquidator’s Application / Application for Directions and Orders Concerning Realisation of Trust Assets

Legal Issues

  1. 1 Whether to appoint the liquidator as receiver and manager over trust assets
  2. 2 Whether to excuse the liquidator from liability under s 1318 of the Corporations Act
  3. 3 Whether to grant the liquidator powers of a receiver under s 420 of the Corporations Act in relation to trust assets

Ratio Decidendi

Where a company acted solely as trustee and all creditors are trust creditors, it is appropriate to order the sale of trust assets and the application of proceeds to satisfy trust creditor claims, and for the liquidator to be appointed as receiver and excused under s 1318 for relevant acts or omissions.

Court Disposition

Orders made as sought by the liquidator

Orders

  • Ms Ruhe is excused under s 1318 of the Corporations Act for any breaches, failures or omissions relating to liquidation in dealing with trust property.
  • Ms Ruhe is appointed, without security, as receiver and manager over the business and assets of the Solar and Storage Trust.