Tang v Arc Attack Engineering Pty Ltd [2018] NSWSC 1891

Tang v Arc Attack Engineering Pty Ltd [2018] NSWSC 1891

Given the contested, adversarial process and the agreement reached between administrators and liquidator, it is appropriate to approve the agreed remuneration sum and to order that the administrators be reimbursed their legal costs from the company's funds, limited to an ordinary basis, pursuant to the court’s power under the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
06 December 2018
Procedural Posture
Application for Remuneration Approval / Judgment and Orders After Contested Hearing
Outcome
Orders made approving remuneration and providing for reimbursement of legal costs to administrators.
Legal Topics
['administrators’ Remuneration' 'liquidation' 'priority of Payments' 'approval of Costs']
['corporations Law' 'insolvency' 'equity'] ['administrators’ Remuneration' 'liquidation' 'priority of Payments' 'approval of Costs']

Case Brief

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Procedural Posture

Application for Remuneration Approval / Judgment and Orders After Contested Hearing

Legal Issues

  1. 1 ['Whether the court should approve the agreed remuneration of administrators under former s 449E of the Corporations Act 2001 (Cth)' 'Whether the agreement between former administrators and liquidator regarding remuneration and costs can displace or vary the statutory order of priority of payments under s 556 of the Corporations Act 2001 (Cth)' 'Appropriate basis for reimbursement of administrators’ legal costs from company funds']

Ratio Decidendi

Given the contested, adversarial process and the agreement reached between administrators and liquidator, it is appropriate to approve the agreed remuneration sum and to order that the administrators be reimbursed their legal costs from the company's funds, limited to an ordinary basis, pursuant to the court’s power under the Corporations Act 2001 (Cth).

Court Disposition

Orders made approving remuneration and providing for reimbursement of legal costs to administrators.

Orders

  • ['Ordered that the remuneration of the plaintiffs, in their former capacity as the administrators of the defendant, is determined to be $119,000 plus GST (or $130,900 inclusive of GST).' 'Ordered that the plaintiffs be reimbursed their costs of the proceedings, limited to their costs on the ordinary basis, by the...