Lawrence (liquidator), in the matter of LXNDR Group Pty Ltd (In liq) [2021] FCA 1243

Lawrence (liquidator), in the matter of LXNDR Group Pty Ltd (In liq) [2021] FCA 1243

Where a company in liquidation has ceased to be trustee by operation of its trust deed, the Court has power to direct that the liquidators may deal with trust property, to relieve them from liability for past dealings, and to confirm their entitlement to indemnity from trust assets for expenses and remuneration, in order to complete the winding up and distribution in accordance with statutory priorities.

Jurisdiction
Australia
Judgment Date
14 October 2021
Procedural Posture
Application in Liquidation / Application for Directions and Orders in Winding Up
Outcome
Application allowed. Orders made as sought in the Originating Process.
Legal Topics
["liquidator's Powers" 'bare Trustee' 'trust Assets Realisation' 'distribution of Trust Property' 'court Authorisation for Dealing With Trust Property' "liquidator's Indemnity"]
['corporations Law' 'equity and Trusts' 'insolvency'] ["liquidator's Powers" 'bare Trustee' 'trust Assets Realisation' 'distribution of Trust Property' 'court Authorisation for Dealing With Trust Property' "liquidator's Indemnity"]

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Procedural Posture

Application in Liquidation / Application for Directions and Orders in Winding Up

Legal Issues

  1. 1 ['Whether liquidators are justified in dealing with trust property after company ceased to be trustee by operation of trust deed' 'Whether the Court should confer power to deal with trust property on a bare trustee in liquidation' 'Entitlement of liquidators to be indemnified from trust assets for their remuneration and costs' 'Whether liquidators should be relieved from liability for prior dealings with trust property']

Ratio Decidendi

Where a company in liquidation has ceased to be trustee by operation of its trust deed, the Court has power to direct that the liquidators may deal with trust property, to relieve them from liability for past dealings, and to confirm their entitlement to indemnity from trust assets for expenses and remuneration, in order to complete the winding up and distribution in accordance with statutory priorities.

Court Disposition

Application allowed. Orders made as sought in the Originating Process.

Orders

  • ['Liquidators are justified and acting reasonably in proceeding on the basis that LXNDR Group Pty Ltd carried on business as trustee of the LXNDR Group Investments Trust and all its assets are trust property.' 'Company authorised to act as trustee and deal with, hold, apply and/or distribute trust property pursuant...