Tonks, in the matter of PWG Holdings Pty Ltd (in liquidation) [2017] FCA 246

Tonks, in the matter of PWG Holdings Pty Ltd (in liquidation) [2017] FCA 246

Where a company in liquidation is a bare trustee of trust property and there is uncertainty as to liquidators' power to dispose of that property, it is appropriate for the court to appoint the liquidators as receivers and managers of the trust property with powers under s 420 of the Corporations Act 2001 (Cth), so that they may sell the trust assets for creditors' benefit.

Jurisdiction
Australia
Judgment Date
27 February 2017
Procedural Posture
Application / Appointment of Receivers and Managers
Outcome
application granted
Legal Topics
['winding Up' 'bare Trustee' 'appointment of Receivers and Managers' 'powers Over Trust Property' "liquidators' Powers"]
['corporations Law' 'insolvency'] ['winding Up' 'bare Trustee' 'appointment of Receivers and Managers' 'powers Over Trust Property' "liquidators' Powers"]

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application / Appointment of Receivers and Managers

Legal Issues

  1. 1 ['Whether liquidators have power to dispose of trust property where company in liquidation is a bare trustee' 'Appropriateness of appointment of plaintiffs as receivers and managers with s 420 powers']

Ratio Decidendi

Where a company in liquidation is a bare trustee of trust property and there is uncertainty as to liquidators' power to dispose of that property, it is appropriate for the court to appoint the liquidators as receivers and managers of the trust property with powers under s 420 of the Corporations Act 2001 (Cth), so that they may sell the trust assets for creditors' benefit.

Court Disposition

application granted

Orders

  • ['The originating process be made returnable instanter.' "Plaintiffs appointed as joint and several receivers and managers without security over the property, assets and undertaking of the 262 Pennant Hills Road Unit Trust, with powers under s 420 of the Corporations Act 2001 (Cth) (excluding s 420(2)(s), (t), (u),...