Bailey (Liquidator) v Rock Solid Rendering Pty Ltd (in liquidation) as trustee of the Rock Solid Trust, in the matter of Rock Solid Rendering Pty Ltd (in liquidation) [2020] FCA 600

Bailey (Liquidator) v Rock Solid Rendering Pty Ltd (in liquidation) as trustee of the Rock Solid Trust, in the matter of Rock Solid Rendering Pty Ltd (in liquidation) [2020] FCA 600

It was just and convenient to appoint the liquidator as receiver and manager of the trust assets, to enable the company to exercise its right of indemnity from the trust assets for liabilities incurred in its trustee capacity, pursuant to s 57 of the Federal Court of Australia Act 1976 (Cth).

Parties
Plaintiff: Liam Bailey in his capacity as liquidator of Rock Solid Rendering Pty Ltd (in liquidation) in its capacity as trustee of the Rock Solid Trust; Defendant: Rock Solid Rendering Pty Ltd (in liquidation)
Jurisdiction
Australia
Judgment Date
04 May 2020
Procedural Posture
Originating Process / Application for Appointment as Receiver and Manager – Orders Made
Outcome
Application granted; liquidator appointed as receiver and manager of trust assets.
Legal Topics
Appointment of Receiver, Trust Indemnity, Liquidator’s Powers, Trust Assets, Receiver’s Remuneration
Insolvency Trusts Corporate Law Appointment of Receiver Trust Indemnity Liquidator’s Powers Trust Assets Receiver’s Remuneration

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Parties

Liam Bailey in his capacity as liquidator of Rock Solid Rendering Pty Ltd (in liquidation) in its capacity as trustee of the Rock Solid Trust

Plaintiff

Rock Solid Rendering Pty Ltd (in liquidation)

Defendant

Procedural Posture

Originating Process / Application for Appointment as Receiver and Manager – Orders Made

Legal Issues

  1. 1 Whether liquidator should be appointed receiver and manager of trust assets under s 57 of the Federal Court of Australia Act 1976 (Cth)
  2. 2 Scope of liquidator’s powers with respect to trust assets under Corporations Act 2001 (Cth)
  3. 3 Payment and capping of receiver’s remuneration from trust assets

Ratio Decidendi

It was just and convenient to appoint the liquidator as receiver and manager of the trust assets, to enable the company to exercise its right of indemnity from the trust assets for liabilities incurred in its trustee capacity, pursuant to s 57 of the Federal Court of Australia Act 1976 (Cth).

Court Disposition

Application granted; liquidator appointed as receiver and manager of trust assets.

Orders

  • Liam Bailey appointed receiver and manager, without security, of the assets, property and undertaking of the Rock Solid Trust pursuant to s 57(1) of the Federal Court of Australia Act 1976 (Cth).
  • As receiver and manager, Liam Bailey to have powers under section 477(2) of the Corporations Act 2001 (Cth), including power to realise trust assets for the indemnity of the former trustee.