Australian Securities and Investments Commission v A One Multi Services Pty Ltd (No 2) [2022] FCA 1100

Australian Securities and Investments Commission v A One Multi Services Pty Ltd (No 2) [2022] FCA 1100

The receivers' remuneration for work performed from 21 October 2021 to 31 May 2022 was fair and reasonable, supported by detailed time records, appropriate review and discounting, and was proportionate to the receivership's complexity and the value of assets involved; the application for approval of remuneration for future work was refused because the receivers did not provide sufficient estimates or details on likely work, duration, or effect on the property, and in light of ASIC's opposition.

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: A One Multi Services Pty Ltd; Second Defendant: Aryn Henry Hala; Third Defendant: Heidi Elizabeth Walters; Interested Person: John Ross Lindholm as Receiver & Manager of the Defendants; Interested Person: Timothy James Michael as Receiver & Manager of the Defendants
Jurisdiction
Australia
Judgment Date
16 September 2022
Procedural Posture
Corporations Application for Receivers' Remuneration / Ruling on Application for Approval and Fixing of Past and Future Receivers' Remuneration
Outcome
Application for approval and fixing of past receivers' remuneration granted; approval for future remuneration refused.
Legal Topics
Receivership Remuneration, Approval of Past and Prospective Remuneration, Court Appointed Receivers, Proportionality in Insolvency Administration
Corporations Law Receivership Remuneration Approval of Past and Prospective Remuneration Court Appointed Receivers Proportionality in Insolvency Administration

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Parties

Australian Securities and Investments Commission

Plaintiff

A One Multi Services Pty Ltd

First Defendant

Aryn Henry Hala

Second Defendant

Heidi Elizabeth Walters

Third Defendant

John Ross Lindholm as Receiver & Manager of the Defendants

Interested Person

Timothy James Michael as Receiver & Manager of the Defendants

Interested Person

Procedural Posture

Corporations Application for Receivers' Remuneration / Ruling on Application for Approval and Fixing of Past and Future Receivers' Remuneration

Legal Issues

  1. 1 Whether the receivers' remuneration for past work should be fixed and approved for payment out of the property of the defendants
  2. 2 Whether the court should approve prospective remuneration for future work of the receivers

Ratio Decidendi

The receivers' remuneration for work performed from 21 October 2021 to 31 May 2022 was fair and reasonable, supported by detailed time records, appropriate review and discounting, and was proportionate to the receivership's complexity and the value of assets involved; the application for approval of remuneration for future work was refused because the receivers did not provide sufficient estimates or details on likely work, duration, or effect on the property, and in light of ASIC's opposition.

Court Disposition

Application for approval and fixing of past receivers' remuneration granted; approval for future remuneration refused.

Orders

  • The receivers' remuneration for the period from 21 October 2021 to 31 May 2022 inclusive, is fixed in the sum of $773,115.00 plus GST and approved for payment out of the property of the First, Second and Third Defendants, or any of them.
  • Costs of the application are reserved.