In the matter of Lowery Classic Homes Pty Ltd (in liq) [2013] NSWSC 719

In the matter of Lowery Classic Homes Pty Ltd (in liq) [2013] NSWSC 719

The process for approval of the liquidator's remuneration had failed for the relevant period because the committee of inspection lacked a quorum, there was no reason to expect that a further committee meeting or general creditors' meeting would cure the difficulty, creditors were unlikely to receive a dividend and unlikely to attend, and no attending committee member was prepared to propose a resolution. A question therefore arose in the winding up as to the proper remuneration, suitable for referral to the Corporations Registrar for assessment and report to a judge under s 511 of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
04 June 2013
Procedural Posture
Corporations Winding Up Application for Determination of Liquidator Remuneration Under S 511 of the Corporations Act 2001 (cth) / Interlocutory Application
Outcome
Referred to Corporations Registrar to determine the question of the proper remuneration of the liquidator.
Legal Topics
['winding Up' "liquidators' Remuneration" 'committee of Inspection' "creditors' Voluntary Winding Up" 'referral to Corporations Registrar']
['corporations Law' 'insolvency'] ['winding Up' "liquidators' Remuneration" 'committee of Inspection' "creditors' Voluntary Winding Up" 'referral to Corporations Registrar']

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Procedural Posture

Corporations Winding Up Application for Determination of Liquidator Remuneration Under S 511 of the Corporations Act 2001 (cth) / Interlocutory Application

Legal Issues

  1. 1 ["Whether the Court should determine or refer for assessment the liquidator's further remuneration where the committee of inspection did not approve it and lacked a quorum." 'Whether the process for fixing remuneration under s 499 of the Corporations Act 2001 (Cth) had failed or become unworkable so as to permit determination under s 511.']

Ratio Decidendi

The process for approval of the liquidator's remuneration had failed for the relevant period because the committee of inspection lacked a quorum, there was no reason to expect that a further committee meeting or general creditors' meeting would cure the difficulty, creditors were unlikely to receive a dividend and unlikely to attend, and no attending committee member was prepared to propose a resolution. A question therefore arose in the winding up as to the proper remuneration, suitable for referral to the Corporations Registrar for assessment and report to a judge under s 511 of the Corporations Act 2001 (Cth).

Court Disposition

Referred to Corporations Registrar to determine the question of the proper remuneration of the liquidator.

Orders

  • ['There be referred to the Corporations Registrar the question of the proper remuneration of Mr Bruce Gleeson (in his capacity as liquidator of Lowery Classic Homes Pty Limited (in liq)) (in addition to any remuneration that has already been approved by the committee of inspection) for the period 9 September 2011 to...