Bastion v Gideon Investments [2000] NSWSC 939

Bastion v Gideon Investments [2000] NSWSC 939

It was more likely than not that an express trust existed on the terms of the draft Trust Deed and investors are beneficiaries with equitable proprietary rights; liquidator is justified in treating company assets as trust assets and in being appointed receiver and manager with power of sale; reasonable remuneration, costs and expenses to be recoverable out of trust assets.

Parties
Applicant / Liquidator: Geoffrey Trent Hancock; Defendant / Company in Liquidation: Gideon Investments Pty Ltd (In liq); Plaintiff in Principal Proceedings: Maureen Catherine Bastion
Jurisdiction
Australia
Judgment Date
06 October 2000
Procedural Posture
Application in Liquidation / Directions and Orders After Appointment of Liquidator, Including Application for Appointment as Receiver and Manager
Outcome
Directions and orders granted as sought, subject to Court's modifications. Liquidator justified in recognising trust and beneficiaries; assets to be treated as trust assets; ordered appointed as receiver and manager with power of sale; remuneration, costs and expenses recoverable out of trust assets; other...
Legal Topics
Liquidators' Powers and Duties, Directions to Liquidator, Express Trusts, Appointment of Receiver and Manager, Remuneration Out of Trust Assets
Corporations Equity Liquidators' Powers and Duties Directions to Liquidator Express Trusts Appointment of Receiver and Manager Remuneration Out of Trust Assets

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Parties

Geoffrey Trent Hancock

Applicant / Liquidator

Gideon Investments Pty Ltd (In liq)

Defendant / Company in Liquidation

Maureen Catherine Bastion

Plaintiff in Principal Proceedings

Procedural Posture

Application in Liquidation / Directions and Orders After Appointment of Liquidator, Including Application for Appointment as Receiver and Manager

Legal Issues

  1. 1 Whether the liquidator is justified in recognising an express trust and beneficiaries
  2. 2 Whether company's assets should be treated as trust assets
  3. 3 Whether the liquidator should be appointed receiver and manager of trust property

Ratio Decidendi

It was more likely than not that an express trust existed on the terms of the draft Trust Deed and investors are beneficiaries with equitable proprietary rights; liquidator is justified in treating company assets as trust assets and in being appointed receiver and manager with power of sale; reasonable remuneration, costs and expenses to be recoverable out of trust assets.

Court Disposition

Directions and orders granted as sought, subject to Court's modifications. Liquidator justified in recognising trust and beneficiaries; assets to be treated as trust assets; ordered appointed as receiver and manager with power of sale; remuneration, costs and expenses recoverable out of trust assets; other...

Orders

  • Liquidator justified in recognising express trust on terms of Trust Deed (not Management Agreement)
  • Liquidator justified in recognising listed persons (and others with proof) as beneficiaries