In the matter of Bestcare Foods Ltd (subject to a Deed of Company Arrangement) [2014] NSWSC 1630

In the matter of Bestcare Foods Ltd (subject to a Deed of Company Arrangement) [2014] NSWSC 1630

It was not just to order a general review of the administrators' or deed administrators' remuneration because creditors had repeatedly approved the remuneration after receiving reports describing the work, the remuneration was not shown to be self-evidently excessive, the administrators had assumed significant responsibility and risk in trading and funding the business, Mr Goldring and creditors did not object for an extended period, and criticisms of substantive decisions and disbursements did not establish a sufficient basis for review under s 449E(2). A limited review was justified only for the remuneration approved on 3 March 2011, because the approval contemplated that specified...

Jurisdiction
Australia
Judgment Date
19 November 2014
Procedural Posture
Application Under S 449 E(2) of the Corporations Act 2001 (cth) for Review of Remuneration of Administrators and Deed Administrators / Interlocutory Application
Outcome
Order made for review by the Registrar limited to fees comprising a maximum amount of $100,000 approved at the creditors' meeting on 3 March 2011.
Legal Topics
['voluntary Administration' 'deed of Company Arrangement' "review of Administrators' and Deed Administrators' Remuneration" "creditors' Approval of Remuneration" 'delay and Acquiescence' 'informed Consent of Creditors']
['corporations' 'insolvency'] ['voluntary Administration' 'deed of Company Arrangement' "review of Administrators' and Deed Administrators' Remuneration" "creditors' Approval of Remuneration" 'delay and Acquiescence' 'informed Consent of Creditors']

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Procedural Posture

Application Under S 449 E(2) of the Corporations Act 2001 (cth) for Review of Remuneration of Administrators and Deed Administrators / Interlocutory Application

Legal Issues

  1. 1 ['Whether it was just for the Court to order a review of remuneration fixed by creditors for administrators and deed administrators under s 449E(2) of the Corporations Act 2001 (Cth).' 'Whether alleged deficiencies in information provided to creditors and alleged excessiveness of remuneration justified a review.' "Whether delay, acquiescence and creditors' informed approval weighed against review." 'Whether complaints about disbursements and substantive administration decisions could be addressed in an application for review of remuneration under s 449E(2).' "Whether the failure to obtain particular creditors' approval before drawing monthly remuneration approved on 3 March 2011 justified a limited review."]

Ratio Decidendi

It was not just to order a general review of the administrators' or deed administrators' remuneration because creditors had repeatedly approved the remuneration after receiving reports describing the work, the remuneration was not shown to be self-evidently excessive, the administrators had assumed significant responsibility and risk in trading and funding the business, Mr Goldring and creditors did not object for an extended period, and criticisms of substantive decisions and disbursements did not establish a sufficient basis for review under s 449E(2). A limited review was justified only for the remuneration approved on 3 March 2011, because the approval contemplated that specified...

Court Disposition

Order made for review by the Registrar limited to fees comprising a maximum amount of $100,000 approved at the creditors' meeting on 3 March 2011.

Orders

  • ["Under s 449E of the Corporations Act, a review be undertaken by the Registrar limited only to fees comprising a maximum amount of $100,000 approved at the creditors' meeting on 3 March 2011."]