Kreab Gavin Anderson (Australia) Ltd, in the matter of Kreab Gavin Anderson (Australia) Ltd (No 3) [2017] FCA 1473

Kreab Gavin Anderson (Australia) Ltd, in the matter of Kreab Gavin Anderson (Australia) Ltd (No 3) [2017] FCA 1473

Since almost all services performed by the applicants as purported administrators and liquidators were of incontrovertible benefit to the company, it would be unconscionable for the company to retain that benefit without paying reasonable remuneration. The court thus declared entitlement to reasonable remuneration for those periods and referred the determination of the amount to the District Registrar.

Parties
Plaintiff: Kreab Gavin Anderson (Australia) Ltd; Applicant: Simon John Thorn; Applicant: Bradley John Tonks
Jurisdiction
Australia
Judgment Date
08 December 2017
Procedural Posture
Corporate Insolvency Application / Judgment on Interlocutory Application for Remuneration Under Invalid/irregular Appointments
Outcome
Declaration and referral to Registrar
Legal Topics
Remuneration of Administrators and Liquidators, Quantum Meruit, Invalid Corporate Officer Appointments
Corporations Law Insolvency Remuneration of Administrators and Liquidators Quantum Meruit Invalid Corporate Officer Appointments

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Parties

Kreab Gavin Anderson (Australia) Ltd

Plaintiff

Simon John Thorn

Applicant

Bradley John Tonks

Applicant

Procedural Posture

Corporate Insolvency Application / Judgment on Interlocutory Application for Remuneration Under Invalid/irregular Appointments

Legal Issues

  1. 1 Whether remuneration can be recovered for work done under invalid appointments as administrators and liquidators
  2. 2 Whether services rendered by invalidly appointed officers conferred an incontrovertible benefit on the company warranting remuneration

Ratio Decidendi

Since almost all services performed by the applicants as purported administrators and liquidators were of incontrovertible benefit to the company, it would be unconscionable for the company to retain that benefit without paying reasonable remuneration. The court thus declared entitlement to reasonable remuneration for those periods and referred the determination of the amount to the District Registrar.

Court Disposition

Declaration and referral to Registrar

Orders

  • Declaration that the applicants are entitled to reasonable remuneration for work done as administrators and as liquidators in a creditors' voluntary winding up, up to their appointment as provisional liquidators.
  • Appointment of the District Registrar as referee under s 54A of the Federal Court of Australia Act 1976 (Cth) to determine reasonable remuneration.