In the matter of Banksia Securities Ltd (in liq) (receivers and managers appointed) [2017] NSWSC 540

In the matter of Banksia Securities Ltd (in liq) (receivers and managers appointed) [2017] NSWSC 540

The remuneration was approved because the special purpose receivers provided sufficient evidence, including affidavits, remuneration reports and time narratives, showing that the work was reasonable and necessary, performed at appropriate seniority, proportionate to the complexity and significance of the Banksia proceedings, and fairly calculated on a time-charging basis; the committee of inspection had approved the remuneration and ASIC did not oppose the applications.

Jurisdiction
Australia
Judgment Date
05 May 2017
Procedural Posture
Application to Approve and Fix Remuneration of Special Purpose Receivers / Interlocutory Processes Filed on 21 March 2017 and 28 April 2017
Outcome
Application granted; remuneration approved and fixed; costs to be costs in the special purpose receivership.
Legal Topics
['remuneration of Special Purpose Receivers' 'court Approval of Remuneration' 'time Based Remuneration' 'committee of Inspection Approval' 'special Purpose Receivership Litigation Funding']
['corporations' 'insolvency' 'external Administration'] ['remuneration of Special Purpose Receivers' 'court Approval of Remuneration' 'time Based Remuneration' 'committee of Inspection Approval' 'special Purpose Receivership Litigation Funding']

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Procedural Posture

Application to Approve and Fix Remuneration of Special Purpose Receivers / Interlocutory Processes Filed on 21 March 2017 and 28 April 2017

Legal Issues

  1. 1 ['Whether the remuneration claimed by the special purpose receivers for three six-month periods was reasonable and should be approved and fixed by the Court.' "Whether time-based charging was an appropriate basis for calculating the special purpose receivers' remuneration in the circumstances of the receivership." 'Whether a contradictor representing debenture holders was required where the committee of inspection had approved the remuneration and ASIC did not oppose the relief.']

Ratio Decidendi

The remuneration was approved because the special purpose receivers provided sufficient evidence, including affidavits, remuneration reports and time narratives, showing that the work was reasonable and necessary, performed at appropriate seniority, proportionate to the complexity and significance of the Banksia proceedings, and fairly calculated on a time-charging basis; the committee of inspection had approved the remuneration and ASIC did not oppose the applications.

Court Disposition

Application granted; remuneration approved and fixed; costs to be costs in the special purpose receivership.

Orders

  • ['That the remuneration of Mr John Ross Lindholm and Mr Peter Damien McCluskey as the special purpose receivers of Banksia Securities Limited (in liq) (recs and mgrs apptd) for the period 6 October 2015 to 31 March 2016 be approved and fixed in the sum of $168,442.50 plus GST.' 'That the remuneration of Mr John Ross...