Parker, in the matter of Strongest Link Pty Ltd ACN 097 973 254 (in liq) [2008] FCA 1007

Parker, in the matter of Strongest Link Pty Ltd ACN 097 973 254 (in liq) [2008] FCA 1007

The DOCA was not terminated by the winding up because none of the statutory circumstances for termination occurred; no trust was created by the DOCA over the fund, which remains company property; therefore, upon Court-ordered termination of the DOCA, the liquidator is obliged to distribute the fund in accordance with liquidation provisions, and his remuneration is a deferred expense under s 556.

Jurisdiction
Australia
Judgment Date
03 July 2008
Procedural Posture
Corporations Law Directions/termination Application / Judgment and Final Orders
Outcome
DOCA terminated; directions granted; orders made for distribution and remuneration.
Legal Topics
['deed of Company Arrangement (doca)' 'termination of Doca' "liquidator's Obligations" 'distribution of Company Assets' 'trusts in Corporate Insolvency']
['corporations Law' 'insolvency'] ['deed of Company Arrangement (doca)' 'termination of Doca' "liquidator's Obligations" 'distribution of Company Assets' 'trusts in Corporate Insolvency']

Case Brief

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Procedural Posture

Corporations Law Directions/termination Application / Judgment and Final Orders

Legal Issues

  1. 1 ['Whether the DOCA was terminated by the winding up or needs Court order' 'Whether the fund under the DOCA is held on trust for creditors or is company property' 'How monies held under the DOCA should be distributed post-liquidation' "Liquidator's obligation to treat remuneration as deferred expense"]

Ratio Decidendi

The DOCA was not terminated by the winding up because none of the statutory circumstances for termination occurred; no trust was created by the DOCA over the fund, which remains company property; therefore, upon Court-ordered termination of the DOCA, the liquidator is obliged to distribute the fund in accordance with liquidation provisions, and his remuneration is a deferred expense under s 556.

Court Disposition

DOCA terminated; directions granted; orders made for distribution and remuneration.

Orders

  • ['Order that the deed of company arrangement be terminated pursuant to s 445D(1) of Corporations Act 2001 (Cth)' 'Order that upon termination, fund is property of company and to be distributed in winding up' 'Order that remuneration payable under DOCA is treated as deferred expenses under s 556' 'Order that costs of...