In the matter of Fellmane Pty Ltd (in liq) [2022] NSWSC 1038

In the matter of Fellmane Pty Ltd (in liq) [2022] NSWSC 1038

The court, satisfied the remuneration claimed was fair, reasonable, and commensurate with the work done in the capacities of Receiver and Liquidator and connected to trust assets, ordered that it be paid from the assets of the Family Trust. Distribution to creditors was approved according to statutory priorities for liabilities incurred as trustee. Discharge and release of Receiver (and staff) was granted, subject to liberty for interested persons to apply within specified time after account filing.

Parties
First Applicant: Brendan James Copeland in his capacity as liquidator of Fellmane Pty Limited (in liq) ACN 074 162 815; First Interested Party: SX Projects Pty Ltd (in liq); Second Interested Party: Deputy Commissioner of Taxation
Jurisdiction
Australia
Judgment Date
03 August 2022
Procedural Posture
Interlocutory Process Under Equitable Jurisdiction (corporations List) / Order and Reasons for Orders Fixing Remuneration, Authorising Distribution, and Discharging Receiver
Outcome
Orders made fixing remuneration, authorising distribution to creditors, ordering filing of final account, and discharging and releasing receiver subject to liberty to apply.
Legal Topics
Liquidator Remuneration, Receiver Remuneration, Distribution to Creditors, Trustee's Right of Indemnity, Discharge and Release of Receiver
Corporations Law Equity Insolvency Liquidator Remuneration Receiver Remuneration Distribution to Creditors Trustee's Right of Indemnity Discharge and Release of Receiver

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Parties

Brendan James Copeland in his capacity as liquidator of Fellmane Pty Limited (in liq) ACN 074 162 815

First Applicant

SX Projects Pty Ltd (in liq)

First Interested Party

Deputy Commissioner of Taxation

Second Interested Party

Procedural Posture

Interlocutory Process Under Equitable Jurisdiction (corporations List) / Order and Reasons for Orders Fixing Remuneration, Authorising Distribution, and Discharging Receiver

Legal Issues

  1. 1 Whether remuneration claimed by liquidator and receiver is fair, reasonable, and payable from trust assets
  2. 2 Order of priority for distribution to creditors from remaining trust assets
  3. 3 Whether discharge and release of receiver is appropriate upon completion of distribution and filing of accounts

Ratio Decidendi

The court, satisfied the remuneration claimed was fair, reasonable, and commensurate with the work done in the capacities of Receiver and Liquidator and connected to trust assets, ordered that it be paid from the assets of the Family Trust. Distribution to creditors was approved according to statutory priorities for liabilities incurred as trustee. Discharge and release of Receiver (and staff) was granted, subject to liberty for interested persons to apply within specified time after account filing.

Court Disposition

Orders made fixing remuneration, authorising distribution to creditors, ordering filing of final account, and discharging and releasing receiver subject to liberty to apply.

Orders

  • Remuneration of Brendan James Copeland fixed at $59,292 (ex GST) for 24 August 2021–14 June 2022 and not exceeding $20,000 (ex GST) from 15 June 2022 to conclusion; both to be paid from Family Trust assets.
  • Receiver/Liquidator to pay from remaining Family Trust assets (after costs, expenses, and remuneration): $365,879.19 to Commissioner of Taxation (capital gains tax liability); $8,049.64 to SX Projects (petitioning creditor costs); then pari passu to Commissioner of Taxation ($6,780 penalty) and SX Projects...