Gidley, in the matter of Aliance Motor Body Pty Limited (Subject to Deed of Company Arrangement) (ACN 109 860 899) [2006] FCA 102

Gidley, in the matter of Aliance Motor Body Pty Limited (Subject to Deed of Company Arrangement) (ACN 109 860 899) [2006] FCA 102

Remuneration of an administrator under a deed of company arrangement may be fixed prospectively by reference to a formula based on time, provided the formula is objective and all elements can be identified; the resolutions in question satisfied this requirement under s 449E of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
16 February 2006
Procedural Posture
Application for Directions / Judgment
Outcome
Direction granted
Legal Topics
['administrator Remuneration' 'deed of Company Arrangement' 'creditors Meeting' 'fixing Remuneration']
['corporations Law' 'insolvency'] ['administrator Remuneration' 'deed of Company Arrangement' 'creditors Meeting' 'fixing Remuneration']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application for Directions / Judgment

Legal Issues

  1. 1 ["Whether remuneration of an administrator under a deed of company arrangement can be properly 'fixed' prospectively by reference to an hourly rate subject to a monetary cap under s 449E of the Corporations Act 2001 (Cth)." 'Whether the resolutions passed by creditors were validly fixed within the meaning of s 449E.']

Ratio Decidendi

Remuneration of an administrator under a deed of company arrangement may be fixed prospectively by reference to a formula based on time, provided the formula is objective and all elements can be identified; the resolutions in question satisfied this requirement under s 449E of the Corporations Act 2001 (Cth).

Court Disposition

Direction granted

Orders

  • ['The plaintiff, in his capacity as administrator of the deed of company arrangement for Aliance Motor Body Pty Limited, is justified in acting on the basis that his remuneration as administrator and as deed administrator has been and was properly fixed by resolutions of the creditors passed at a meeting convened...