In the matter of ACN 159 605 188 Pty Limited (in liquidation) (formerly Securimax Pty Limited) [2018] NSWSC 356

In the matter of ACN 159 605 188 Pty Limited (in liquidation) (formerly Securimax Pty Limited) [2018] NSWSC 356

Having regard to the evidence of risk and complexity, previous creditor approval, and a significant discount already agreed, the remuneration of $120,000 plus GST was reasonable, proportional, and not excessive. Replacement of the liquidators was in the interests of the liquidation to enable a new liquidator free from prior disputes to conduct the winding up, with necessary funding provided.

Parties
Plaintiff: Graham Allan Potter; Defendants: Domenico Alessandro Calabretta and Grahame Ward
Jurisdiction
Australia
Judgment Date
20 March 2018
Procedural Posture
Application for Review of Administrators' Remuneration and for Replacement of Liquidator / Final Orders After Consent
Outcome
Orders made by consent: Administrators' remuneration reduced; new liquidator appointed.
Legal Topics
Administrators' Remuneration, Replacement of Liquidator, Proportionality in Insolvency Remuneration, Consent Orders in Insolvency Proceedings
Corporations Law Insolvency Equity Administrators' Remuneration Replacement of Liquidator Proportionality in Insolvency Remuneration Consent Orders in Insolvency Proceedings

Case Brief

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Parties

Graham Allan Potter

Plaintiff

Domenico Alessandro Calabretta and Grahame Ward

Defendants

Procedural Posture

Application for Review of Administrators' Remuneration and for Replacement of Liquidator / Final Orders After Consent

Legal Issues

  1. 1 Whether the remuneration of the Administrators for the period between 10 October 2016 and 28 November 2016 should be reviewed and reduced under s 449E of the Corporations Act 2001 (Cth) for lack of proportionality and necessity of work performed
  2. 2 Whether replacement of the liquidators is in the interests of the Company and its creditors under ss 90-15(3)(b)-(c) of the Insolvency Practice Schedule (Corporations)

Ratio Decidendi

Having regard to the evidence of risk and complexity, previous creditor approval, and a significant discount already agreed, the remuneration of $120,000 plus GST was reasonable, proportional, and not excessive. Replacement of the liquidators was in the interests of the liquidation to enable a new liquidator free from prior disputes to conduct the winding up, with necessary funding provided.

Court Disposition

Orders made by consent: Administrators' remuneration reduced; new liquidator appointed.

Orders

  • The remuneration of the Defendants for the period between 10 October 2016 and 28 November 2016 is varied from $150,000 plus GST to $120,000 plus GST.
  • Administrators to repay $33,000 plus GST to the Company within seven days.