In the matter of The Arms Global Group Limited (in Liquidation) [2018] NSWSC 512

In the matter of The Arms Global Group Limited (in Liquidation) [2018] NSWSC 512

The appropriate course was not to pay the trust funds into Court but to require the liquidator to notify potential claimants, invite claims, and ultimately distribute the funds according to substantiated claims. The Court approved the liquidator’s remuneration and disbursements from trust funds in fixed proportions, and endorsed a procedure for notification and claim assessment in light of the inability to identify beneficial owners from existing records.

Parties
First Plaintiff: The Arms Global Group Pty Limited (in Liquidation) (ACN 089 619 661); Second Plaintiff: Mark Raymond Hutchins in his capacity as liquidator of Arms Global Group Pty Limited (ACN 089 619 661)
Jurisdiction
Australia
Judgment Date
13 February 2018
Procedural Posture
Corporations – Liquidation – Equity – Judicial Advice / Application for Directions and Approval of Remuneration
Outcome
Liquidator's remuneration and disbursements approved; directions given for notification to claimants and distribution of the trust funds; application fees to be paid out of the trust funds.
Legal Topics
Liquidators' Remuneration, Trust Funds – Unidentified Beneficiaries, Court Directions to Liquidator, Payment of Trust Funds Into Court
Corporations Law Equity Liquidators' Remuneration Trust Funds – Unidentified Beneficiaries Court Directions to Liquidator Payment of Trust Funds Into Court

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Parties

The Arms Global Group Pty Limited (in Liquidation) (ACN 089 619 661)

First Plaintiff

Mark Raymond Hutchins in his capacity as liquidator of Arms Global Group Pty Limited (ACN 089 619 661)

Second Plaintiff

Procedural Posture

Corporations – Liquidation – Equity – Judicial Advice / Application for Directions and Approval of Remuneration

Legal Issues

  1. 1 Whether the Court should approve the liquidator’s remuneration and disbursements out of trust funds held for unidentified beneficiaries
  2. 2 Whether the liquidator should pay the funds into Court or distribute them after notice and proof process
  3. 3 How the liquidator should deal with claims on a deficient mixed trust fund

Ratio Decidendi

The appropriate course was not to pay the trust funds into Court but to require the liquidator to notify potential claimants, invite claims, and ultimately distribute the funds according to substantiated claims. The Court approved the liquidator’s remuneration and disbursements from trust funds in fixed proportions, and endorsed a procedure for notification and claim assessment in light of the inability to identify beneficial owners from existing records.

Court Disposition

Liquidator's remuneration and disbursements approved; directions given for notification to claimants and distribution of the trust funds; application fees to be paid out of the trust funds.

Orders

  • The remuneration of the second plaintiff is approved in the sum of $209,766.15 (inclusive of GST) for dealing with the trust funds.
  • The second plaintiff is justified in paying himself the approved remuneration and disbursements of $88,430.32 from the trust funds in specified proportions from trust accounts.