In the matter of Octaviar Administration Pty Limited (in liquidation) [2020] NSWSC 927

In the matter of Octaviar Administration Pty Limited (in liquidation) [2020] NSWSC 927

The Court held that, due to a breakdown in communications and ongoing impasse with the committees of inspection, and as it was impracticable to convene a creditors' meeting to secure approval, it was appropriate and lawful under s 473(3)(b)(ii) for the Court to fix and approve the liquidators’ remuneration for the specified periods. The amounts claimed were found reasonable by reference to statutory criteria, the scale, complexity, and duration of the liquidations, and the evidence as to the supervision and capping of costs, and objections raised in the notice of objection were unsupported by evidence.

Jurisdiction
Australia
Judgment Date
23 July 2020
Procedural Posture
Corporate Insolvency—liquidators’ Remuneration Approval / Application for Approval of Liquidators’ Remuneration
Outcome
Application granted. Remuneration approved.
Legal Topics
['liquidators’ Remuneration' 'committees of Inspection' 'court Approval of Remuneration' 'creditors’ Meetings' 'external Administration']
['corporations Law' 'insolvency Law' 'equity'] ['liquidators’ Remuneration' 'committees of Inspection' 'court Approval of Remuneration' 'creditors’ Meetings' 'external Administration']

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Procedural Posture

Corporate Insolvency—liquidators’ Remuneration Approval / Application for Approval of Liquidators’ Remuneration

Legal Issues

  1. 1 ["Whether the liquidators' remuneration for the specified periods should be approved by the Court under section 473(3)(b)(ii) of the Corporations Act 2001 (Cth) (as in force before amendment)" 'Whether notices of objection by creditor groups or members of committees of inspection preclude such approval' "Whether it was impracticable to convene a creditors' meeting to approve remuneration, justifying recourse to court approval" 'What sums, if any, are reasonable remuneration for the liquidators for the specified periods']

Ratio Decidendi

The Court held that, due to a breakdown in communications and ongoing impasse with the committees of inspection, and as it was impracticable to convene a creditors' meeting to secure approval, it was appropriate and lawful under s 473(3)(b)(ii) for the Court to fix and approve the liquidators’ remuneration for the specified periods. The amounts claimed were found reasonable by reference to statutory criteria, the scale, complexity, and duration of the liquidations, and the evidence as to the supervision and capping of costs, and objections raised in the notice of objection were unsupported by evidence.

Court Disposition

Application granted. Remuneration approved.

Orders

  • ['The First Plaintiffs are entitled to receive remuneration as liquidators of the Second Plaintiff for the period 1 July 2018 to 28 February 2019 in the amount of $358,731.85 plus GST.' 'The First Plaintiffs are entitled to receive remuneration as liquidators of the Third Plaintiff for the period 1 March 2018 to 28...