Lombe, in the matter of Bosnjak Holdings Pty Ltd (Administrators appointed) [2005] FCA 275

Lombe, in the matter of Bosnjak Holdings Pty Ltd (Administrators appointed) [2005] FCA 275

Given the complexity and scale of the administration, and the absence of committees for each company, it is appropriate to empower the Westbus committee to fix the administrators' remuneration for the group prior to the s 439A meeting, by varying operation of the Act under s 447A.

Parties
Applicant: David John Frank Lombe; Applicant: Peter George Yates; Subject Companies: Bosnjak Holdings Pty Ltd (Administrators Appointed) and related companies (the VA Companies)
Jurisdiction
Australia
Judgment Date
21 March 2005
Procedural Posture
Corporations Administration Application / Interlocutory Application Prior to Second Creditors' Meeting
Outcome
Orders made varying the operation of Pt 5.3A of the Corporations Act to permit the Westbus committee to fix remuneration for all VA Companies; costs of plaintiffs are costs in the administration; matter stood over.
Legal Topics
Remuneration of Administrators, Variation of Operation of the Act, Committee of Creditors, Powers Under S 447 a
Corporations Law Insolvency Remuneration of Administrators Variation of Operation of the Act Committee of Creditors Powers Under S 447 a

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Parties

David John Frank Lombe

Applicant

Peter George Yates

Applicant

Bosnjak Holdings Pty Ltd (Administrators Appointed) and related companies (the VA Companies)

Subject Companies

Procedural Posture

Corporations Administration Application / Interlocutory Application Prior to Second Creditors' Meeting

Legal Issues

  1. 1 Whether provision should be made for fixing administrators' remuneration prior to s 439A meeting
  2. 2 Whether a single committee of creditors may fix remuneration for all companies in administration
  3. 3 Whether it is appropriate to vary operation of Pt 5.3A of the Corporations Act in these circumstances

Ratio Decidendi

Given the complexity and scale of the administration, and the absence of committees for each company, it is appropriate to empower the Westbus committee to fix the administrators' remuneration for the group prior to the s 439A meeting, by varying operation of the Act under s 447A.

Court Disposition

Orders made varying the operation of Pt 5.3A of the Corporations Act to permit the Westbus committee to fix remuneration for all VA Companies; costs of plaintiffs are costs in the administration; matter stood over.

Orders

  • Leave to file application granted.
  • Pt 5.3A of the Act to operate as if the Westbus committee may fix administrators' remuneration for all VA Companies, following written notice.