Griffiths (Administrator) v The Trustee for Chrisamanda Trust trading as Chrisamanda Trust [2017] FCA 1222

Griffiths (Administrator) v The Trustee for Chrisamanda Trust trading as Chrisamanda Trust [2017] FCA 1222

The power to appoint a receiver and manager under s 57(1) of the Federal Court of Australia Act 1976 (Cth) should be exercised where necessary to secure the former trustee’s right of indemnity out of trust assets, having regard to principles set out in earlier authorities and in circumstances facilitating the orderly administration of both the company and the trust's business.

Parties
First Plaintiff: Mitchell Griffiths in his capacity as Administrator of Samandac Pty Ltd (Administrator Appointed); Second Plaintiff: Samandac Pty Ltd (Administrator Appointed) ACN 010 433 922; Respondent: The Trustee for Chrisamanda Trust trading as Chrisamanda Trust (ABN 14 340 541 26)
Jurisdiction
Australia
Judgment Date
15 September 2017
Procedural Posture
Application for Appointment of Receiver and Manager / Ex Parte Interlocutory Application, Orders Made
Outcome
Orders made appointing receiver and manager with ancillary directions
Legal Topics
Appointment of Receiver and Manager, Trustee's Right of Indemnity, Corporate Insolvency
Corporations Law Appointment of Receiver and Manager Trustee's Right of Indemnity Corporate Insolvency

Case Brief

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Parties

Mitchell Griffiths in his capacity as Administrator of Samandac Pty Ltd (Administrator Appointed)

First Plaintiff

Samandac Pty Ltd (Administrator Appointed) ACN 010 433 922

Second Plaintiff

The Trustee for Chrisamanda Trust trading as Chrisamanda Trust (ABN 14 340 541 26)

Respondent

Procedural Posture

Application for Appointment of Receiver and Manager / Ex Parte Interlocutory Application, Orders Made

Legal Issues

  1. 1 Whether a receiver and manager should be appointed over trust property to secure the outgoing trustee company's right of indemnity
  2. 2 Whether the court should exercise its power under s 57(1) of the Federal Court of Australia Act 1976 (Cth)

Ratio Decidendi

The power to appoint a receiver and manager under s 57(1) of the Federal Court of Australia Act 1976 (Cth) should be exercised where necessary to secure the former trustee’s right of indemnity out of trust assets, having regard to principles set out in earlier authorities and in circumstances facilitating the orderly administration of both the company and the trust's business.

Court Disposition

Orders made appointing receiver and manager with ancillary directions

Orders

  • Appointing first plaintiff as receiver and manager of the Chrisamanda Trust business and property without security.
  • Conferring on the receiver all powers an administrator has in respect of company property under s 437A of the Corporations Act 2001 (Cth).