In the matter of Dungowan Manly Pty Ltd (in liq) [2015] NSWSC 491

In the matter of Dungowan Manly Pty Ltd (in liq) [2015] NSWSC 491

The levies made by administrators and the liquidator on shareholders were valid and authorised under the Company's articles of association and the share surrender agreements; no election precluded recovery under alternative levies, subject to the liquidator's choice where amounts overlap. Lot 6 is held on trust by the Company for Mr and Mrs McLaughlin and should be transferred to them, subject to a mortgage to Turner Freeman, whose security extends to proceeds relating to the judgments and costs payable by the Company to Mr and Mrs McLaughlin. The liquidator’s claim to a lien over lot 6 for costs and expenses was not established, as there was insufficient evidence of work done in relation...

Jurisdiction
Australia
Judgment Date
01 May 2015
Procedural Posture
Principal Judgment / Final Judgment Following Trial on Various Cross Claims and Applications
Outcome
Judgment for the liquidator and Mr and Mrs McLaughlin on principal claims as to levies and transfer of lot 6, but no final declaration of a lien for the liquidator.
Legal Topics
['winding Up' 'shareholder Levies' 'company Title to Strata Conversion' 'liquidators’ Costs and Liens' 'constructive and Resulting Trust' 'costs Agreements and Security Over Shares']
['corporations' 'equity' 'trusts' 'mortgages'] ['winding Up' 'shareholder Levies' 'company Title to Strata Conversion' 'liquidators’ Costs and Liens' 'constructive and Resulting Trust' 'costs Agreements and Security Over Shares']

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Procedural Posture

Principal Judgment / Final Judgment Following Trial on Various Cross Claims and Applications

Legal Issues

  1. 1 ['Whether levies made by administrators and liquidator on shareholders in Dungowan Manly Pty Ltd were authorised and enforceable' 'Whether lot 6 (strata unit) is held on trust by the Company for Mr and Mrs McLaughlin' "Whether Turner Freeman's mortgage over shares and distributions secures judgment and costs debts" 'Whether the liquidator is entitled to a lien over trust property (lot 6) for costs, fees, and expenses']

Ratio Decidendi

The levies made by administrators and the liquidator on shareholders were valid and authorised under the Company's articles of association and the share surrender agreements; no election precluded recovery under alternative levies, subject to the liquidator's choice where amounts overlap. Lot 6 is held on trust by the Company for Mr and Mrs McLaughlin and should be transferred to them, subject to a mortgage to Turner Freeman, whose security extends to proceeds relating to the judgments and costs payable by the Company to Mr and Mrs McLaughlin. The liquidator’s claim to a lien over lot 6 for costs and expenses was not established, as there was insufficient evidence of work done in relation...

Court Disposition

Judgment for the liquidator and Mr and Mrs McLaughlin on principal claims as to levies and transfer of lot 6, but no final declaration of a lien for the liquidator.

Orders

  • ['Company entitled to judgment against Shareholders for enforcement of valid levies (liquidator to elect which levy is pressed to the extent of overlap)' 'Mr and Mrs McLaughlin entitled to transfer of lot 6 (unit) to them, subject to mortgage in favour of Turner Freeman' 'Turner Freeman’s mortgage extends to...