In the matter of Australian Hotel Acquisition (in liquidation) and Other Companies; [2011] NSWSC 1441

In the matter of Australian Hotel Acquisition (in liquidation) and Other Companies; [2011] NSWSC 1441

Once the offices of trustee were vacated, the companies held the trust assets as bare trustees, but work remained necessary to preserve and deal with the trust assets. Because that work had to be done by someone, was appropriately done by a professional liquidator, and the expenses and remuneration had been approved by meetings of trust creditors, the Court should approve the paid and unpaid expenses and remuneration and provide for further remuneration to be approved by creditors before payment.

Jurisdiction
Australia
Judgment Date
24 November 2011
Procedural Posture
Corporations; Companies in Liquidation; Trusts / Originating Process Seeking Orders or Advice Concerning Liquidators' Expenses and Remuneration
Outcome
Orders made in terms of paragraphs 5, 6, 7, 9, 10 and 11 of the Short Minutes of Order initialled and dated 24 November 2011.
Legal Topics
['companies in Liquidation' 'unit Trusts' 'bare Trustee' 'liquidator Remuneration' "administrators' Expenses" 'court Directions and Advice']
['corporations' 'insolvency' 'trusts'] ['companies in Liquidation' 'unit Trusts' 'bare Trustee' 'liquidator Remuneration' "administrators' Expenses" 'court Directions and Advice']

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Procedural Posture

Corporations; Companies in Liquidation; Trusts / Originating Process Seeking Orders or Advice Concerning Liquidators' Expenses and Remuneration

Legal Issues

  1. 1 ["Whether administrators and liquidators were justified in making payments, and are justified in making further payments, for expenses and remuneration incurred in connection with trust assets after the companies' offices as trustees had been vacated." 'Whether remuneration could be allowed where the companies in administration and liquidation held the former trust assets as bare trustees.' "Whether s 579G(1)(e) of the Corporations Act 2001, s 511(1) of the Corporations Act 2001, s 63 of the Trustee Act 1925, or the Court's inherent jurisdiction provided an appropriate basis for the orders sought."]

Ratio Decidendi

Once the offices of trustee were vacated, the companies held the trust assets as bare trustees, but work remained necessary to preserve and deal with the trust assets. Because that work had to be done by someone, was appropriately done by a professional liquidator, and the expenses and remuneration had been approved by meetings of trust creditors, the Court should approve the paid and unpaid expenses and remuneration and provide for further remuneration to be approved by creditors before payment.

Court Disposition

Orders made in terms of paragraphs 5, 6, 7, 9, 10 and 11 of the Short Minutes of Order initialled and dated 24 November 2011.

Orders

  • ['The Court makes orders in terms of paragraphs 5, 6, 7, 9, 10, 11 of the Short Minutes of Order initialled and dated 24 November 2011.']