Lombe, in the matter of Bosnjak Holdings Pty Ltd (Subject to a Deed of Company Arrangement) [2005] FCA 1366

Parties

Procedural Posture

Corporations – Remuneration of Deed Administrators / Application for Court Orders Under S 447 a Corporations Act 2001 (cth)

Legal Issues

1. 1 Whether the Committee of Inspection of Westbus Pty Ltd should be empowered to fix the remuneration of the Deed Administrators (and residual administrators’ fees/expenses) for all companies in the group pursuant to s 447A of the Corporations Act 2001 (Cth)

Ratio Decidendi

Given the overwhelming creditor representation on the Committee of Inspection for Westbus and the practical and cost advantages, it is appropriate to empower that committee, by resolution of majority in number and majority in value, to fix the remuneration of the applicants as Administrators and Deed Administrators for all Companies. This includes residual fees and expenses, by appropriate modification under s 447A(1) of the Corporations Act 2001 (Cth).

Court Disposition

Orders granted

Orders

• Pt 5.3A of the Corporations Act 2001 (Cth) is to operate as if s 449E(1)(a) allowed the applicants’ remuneration to be fixed by resolution of the Committee of Inspection of Westbus Pty Ltd for all Companies, provided seven days written notice and majority in number and value among committee members present and voting.
• Committee of Inspection of Westbus Pty Ltd is to fix the remuneration (other than otherwise fixed) of the applicants as Administrators and Deed Administrators of all Companies, after seven days prior written notice, and applicable majority as above.