Tang, in the matter of Wright's Transport Pty Limited (in liq) v Wright (No 3) [2020] FCA 1122

Tang, in the matter of Wright's Transport Pty Limited (in liq) v Wright (No 3) [2020] FCA 1122

Liquidators of a company that was trustee of discretionary trusts, having become bare trustee upon liquidation, require court appointment as receivers and managers to realise trust assets and discharge liabilities. The liquidators’ remuneration, costs, and expenses related to administration of trust assets may be paid from those assets. Authority to dispose of property seized under warrant was warranted as the assets in question belonged to the company in its capacity as trustee.

Parties
First Plaintiff: Jason Bing-Fai Tang and Ozem Azzam Kassem in their capacity as liquidators of Wright's Transport Pty Limited (in liquidation) ACN 110 737 838; Second Plaintiff: Wright's Transport Pty Limited (in liquidation); Defendant: Robert Wright
Jurisdiction
Australia
Judgment Date
10 July 2020
Procedural Posture
Corporations Liquidators' Application / Judgment on Interlocutory Application
Outcome
Applications allowed; orders made in favour of the plaintiffs
Legal Topics
Appointment of Receivers, Liquidator's Powers and Remuneration, Trustee's Right of Indemnity, Sale of Trust Assets
Corporations Law Equity and Trusts Insolvency Appointment of Receivers Liquidator's Powers and Remuneration Trustee's Right of Indemnity Sale of Trust Assets

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Parties

Jason Bing-Fai Tang and Ozem Azzam Kassem in their capacity as liquidators of Wright's Transport Pty Limited (in liquidation) ACN 110 737 838

First Plaintiff

Wright's Transport Pty Limited (in liquidation)

Second Plaintiff

Robert Wright

Defendant

Procedural Posture

Corporations Liquidators' Application / Judgment on Interlocutory Application

Legal Issues

  1. 1 Whether liquidators should be authorised to dispose of seized property under s 530C of the Corporations Act 2001 (Cth)
  2. 2 Whether liquidators should be appointed as receivers and managers over trust assets and undertakings
  3. 3 Entitlement and source of payment for liquidators’ remuneration and costs

Ratio Decidendi

Liquidators of a company that was trustee of discretionary trusts, having become bare trustee upon liquidation, require court appointment as receivers and managers to realise trust assets and discharge liabilities. The liquidators’ remuneration, costs, and expenses related to administration of trust assets may be paid from those assets. Authority to dispose of property seized under warrant was warranted as the assets in question belonged to the company in its capacity as trustee.

Court Disposition

Applications allowed; orders made in favour of the plaintiffs

Orders

  • Plaintiffs authorised under s 530C(4) Corporations Act 2001 (Cth) to dispose of property and books seized under warrant.
  • First plaintiffs appointed as receivers and managers of the assets and undertakings of the RJ & D Wright Asset Holding Trust and the Wright's Transport Family Trust, pursuant to s 57 Federal Court of Australia Act 1976 (Cth), until further order.