White, in the matter of Macro Realty Developments Pty Ltd and Macro Realty Pty Ltd [2019] FCA 1377

White, in the matter of Macro Realty Developments Pty Ltd and Macro Realty Pty Ltd [2019] FCA 1377

It was not practicable for the liquidators to convene a meeting of creditors to approve the remuneration, given the number, location, and characteristics of the creditors, and the potential costs and obstacles involved. Sufficient evidence of work, itemised remuneration, and notice to affected parties had been provided, with no objections received. The remuneration claimed was fair and reasonable. The orders approving and fixing the remuneration as sought were granted, and relief from compliance with the relevant procedural rules was also justified.

Parties
First Applicants: Hayden Leigh White and Matthew David Woods in their capacity as joint and several provisional liquidators of Macro Realty Developments Pty Ltd (in liquidation) and Macro Realty Pty Ltd (in liquidation); Second Applicants: Hayden Leigh White and Matthew David Woods in their capacity as joint and several liquidators of Macro Realty Developments Pty Ltd (in liquidation) and Macro Realty Pty Ltd (in liquidation)
Jurisdiction
Australia
Judgment Date
20 August 2019
Procedural Posture
Application for Approval of Liquidators' Remuneration / Judgment on Remuneration Application
Outcome
Orders granting the determination and fixing of the applicants' remuneration; applicants excused from convening a meeting of creditors; compliance with procedural rules excused; costs in the winding up.
Legal Topics
Liquidators' Remuneration, Provisional Liquidation, Assessment of Remuneration, Meetings of Creditors, Practical Impossibility Exception, Notice and Service Requirements
Corporations Law Insolvency Liquidators' Remuneration Provisional Liquidation Assessment of Remuneration Meetings of Creditors Practical Impossibility Exception Notice and Service Requirements

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Parties

Hayden Leigh White and Matthew David Woods in their capacity as joint and several provisional liquidators of Macro Realty Developments Pty Ltd (in liquidation) and Macro Realty Pty Ltd (in liquidation)

First Applicants

Hayden Leigh White and Matthew David Woods in their capacity as joint and several liquidators of Macro Realty Developments Pty Ltd (in liquidation) and Macro Realty Pty Ltd (in liquidation)

Second Applicants

Procedural Posture

Application for Approval of Liquidators' Remuneration / Judgment on Remuneration Application

Legal Issues

  1. 1 Whether the remuneration claimed by the provisional liquidators and liquidators is fair and reasonable under s 473(2)-(3) of the Corporations Act 2001 (Cth)
  2. 2 Whether the applicants should be excused from convening a meeting of creditors to determine remuneration due to impracticability
  3. 3 Whether notice and service requirements for the remuneration applications were complied with

Ratio Decidendi

It was not practicable for the liquidators to convene a meeting of creditors to approve the remuneration, given the number, location, and characteristics of the creditors, and the potential costs and obstacles involved. Sufficient evidence of work, itemised remuneration, and notice to affected parties had been provided, with no objections received. The remuneration claimed was fair and reasonable. The orders approving and fixing the remuneration as sought were granted, and relief from compliance with the relevant procedural rules was also justified.

Court Disposition

Orders granting the determination and fixing of the applicants' remuneration; applicants excused from convening a meeting of creditors; compliance with procedural rules excused; costs in the winding up.

Orders

  • Remuneration of $122,470.00 (plus GST) to the First Applicants as provisional liquidators of Macro Realty Developments Pty Ltd (for the period 14 March 2017 to 30 May 2017) fixed and approved.
  • Remuneration of $54,762.50 (plus GST) to the First Applicants as provisional liquidators of Macro Realty Pty Ltd (for the period 14 March 2017 to 30 May 2017) fixed and approved.