In the matter Karim Pty Ltd [2021] NSWSC 141

In the matter Karim Pty Ltd [2021] NSWSC 141

The liquidators provided sufficient itemised evidence to establish that the work was properly and reasonably performed in the winding up, that time-based charging was appropriate, and that the discounted remuneration of $18,000 plus GST was fair, reasonable and proportionate. All creditors had been paid in full, the Company had a surplus, the only persons shown to be entitled to it were the two equal contributories, and it was appropriate to permit equal distribution of the surplus and dispense with publication and Form 551 requirements in the circumstances.

Jurisdiction
Australia
Judgment Date
24 February 2021
Procedural Posture
Corporations Winding Up Application in the Equity Corporations List / Interlocutory Process for Approval of Liquidators' Remuneration and Special Leave to Distribute Surplus Assets
Outcome
Orders made fixing the liquidators' remuneration, granting special leave to distribute surplus assets equally to the contributories, dispensing with Form 551 and publication requirements, and treating costs as costs in the winding up.
Legal Topics
["liquidators' Remuneration" 'distribution of Surplus Assets' 'special Leave to Distribute Surplus to Contributories' 'dispensing With Publication Requirements']
['corporations' 'insolvency' 'winding Up'] ["liquidators' Remuneration" 'distribution of Surplus Assets' 'special Leave to Distribute Surplus to Contributories' 'dispensing With Publication Requirements']

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Procedural Posture

Corporations Winding Up Application in the Equity Corporations List / Interlocutory Process for Approval of Liquidators' Remuneration and Special Leave to Distribute Surplus Assets

Legal Issues

  1. 1 ["Whether the liquidators' remuneration for work carried out between 4 July 2020 and 27 November 2020 should be fixed in the amount of $18,000 plus GST." 'Whether the liquidators should be granted special leave under s 488(2) of the Corporations Act 2001 (Cth) to distribute the surplus assets of the Company to its contributories.' 'Whether compliance with rr 7.9(2) and (3) of the Supreme Court (Corporations) Rules 1999 (NSW) should be dispensed with.' 'Whether the requirement under reg 5.6.71 of the Corporations Regulations 2001 (Cth) for a Form 551 schedule to be annexed should be dispensed with.']

Ratio Decidendi

The liquidators provided sufficient itemised evidence to establish that the work was properly and reasonably performed in the winding up, that time-based charging was appropriate, and that the discounted remuneration of $18,000 plus GST was fair, reasonable and proportionate. All creditors had been paid in full, the Company had a surplus, the only persons shown to be entitled to it were the two equal contributories, and it was appropriate to permit equal distribution of the surplus and dispense with publication and Form 551 requirements in the circumstances.

Court Disposition

Orders made fixing the liquidators' remuneration, granting special leave to distribute surplus assets equally to the contributories, dispensing with Form 551 and publication requirements, and treating costs as costs in the winding up.

Orders

  • ['Order that the remuneration of the plaintiffs as liquidators of Karim Pty Limited ACN 147 759 653 (in liq) (the Company) for the period 4 July 2020 and 27 November 2020 is determined to be $18,000 (plus GST).' 'Order pursuant to section 488(2) of the Corporations Act 2001 (Cth) that the plaintiffs be granted...