Smith, in the matter of Oceanic Asset Management Pty Ltd [2016] FCA 644

Smith, in the matter of Oceanic Asset Management Pty Ltd [2016] FCA 644

Mr Smith provided sufficient information to enable the Court to assess that the remuneration claimed for his and his staff's work as provisional liquidators was fair and reasonable; the absence of objections and the reasonableness of charge-out rates supported the determination. The statutory regime distinguishes remuneration from disbursements, the latter recoverable by right of indemnification and equitable lien without court approval unless challenged.

Parties
Applicant: Vincent Anthony Smith; Company in Liquidation: Australian Global Capital Pty Ltd; Company in Liquidation: Mulato Nominees Pty Ltd
Jurisdiction
Australia
Judgment Date
01 June 2016
Procedural Posture
Application for Determination of Remuneration of Provisional Liquidator / Post Liquidation; Determination of Remuneration and Expenses
Outcome
Application granted
Legal Topics
Provisional Liquidator's Remuneration, Liquidator's Disbursements, Assessment of Fair and Reasonable Remuneration, Equitable Lien Over Assets
Corporations Provisional Liquidator's Remuneration Liquidator's Disbursements Assessment of Fair and Reasonable Remuneration Equitable Lien Over Assets

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Parties

Vincent Anthony Smith

Applicant

Australian Global Capital Pty Ltd

Company in Liquidation

Mulato Nominees Pty Ltd

Company in Liquidation

Procedural Posture

Application for Determination of Remuneration of Provisional Liquidator / Post Liquidation; Determination of Remuneration and Expenses

Legal Issues

  1. 1 Whether the provisional liquidator's remuneration is fair and reasonable
  2. 2 Whether remuneration includes disbursements
  3. 3 Provisional liquidator's right to indemnity and equitable lien

Ratio Decidendi

Mr Smith provided sufficient information to enable the Court to assess that the remuneration claimed for his and his staff's work as provisional liquidators was fair and reasonable; the absence of objections and the reasonableness of charge-out rates supported the determination. The statutory regime distinguishes remuneration from disbursements, the latter recoverable by right of indemnification and equitable lien without court approval unless challenged.

Court Disposition

Application granted

Orders

  • The applicant is entitled to remuneration of $69,548.60 (plus GST) for work undertaken as provisional liquidator of Australian Global Capital Pty Ltd (in liquidation) for the period 24 August 2015 to 12 November 2015.
  • The applicant is indemnified from, and entitled to an equitable lien over, the assets of Australian Global Capital Pty Ltd for the remuneration, costs, and expenses incurred.