In the matter of Say Enterprises Pty Ltd [2018] NSWSC 396

In the matter of Say Enterprises Pty Ltd [2018] NSWSC 396

In the context of an interim court-appointed receivership, the proper function of the receivers was to secure and preserve the company's business and assets rather than to undertake extensive investigations or interventions. Remuneration should reflect only work that was reasonable and necessary to those functions and is fixed at $60,500 inclusive of GST. Dispensation with filing further accounts is appropriate where the cost and duplication outweighs any benefit, and release is proper in the absence of foreshadowed claims, subject to a three-month period for potential claims.

Parties
Plaintiff: Yosi Tangy; First Defendant: Say Enterprises Pty Ltd; Second Defendant: Stav Marie Berrebi; Third Defendant: Alon Simon; Fourth Defendant: NSI Retail Pty Ltd; Applicants/receivers: Antony Resnick and David Solomons
Jurisdiction
Australia
Judgment Date
29 March 2018
Procedural Posture
Corporate Receivership (remuneration Application) / Post Receivership, Remuneration and Release Orders
Outcome
Receivers' remuneration reduced and fixed at $60,500 inclusive of GST; dispensation with final accounts; release granted subject to three-month claim window.
Legal Topics
Receiver's Remuneration, Release of Receivers, Accounts of Receivers, Powers and Duties of Receivers
Corporations Equity Insolvency Receiver's Remuneration Release of Receivers Accounts of Receivers Powers and Duties of Receivers

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Parties

Yosi Tangy

Plaintiff

Say Enterprises Pty Ltd

First Defendant

Stav Marie Berrebi

Second Defendant

Alon Simon

Third Defendant

NSI Retail Pty Ltd

Fourth Defendant

Antony Resnick and David Solomons

Applicants/receivers

Procedural Posture

Corporate Receivership (remuneration Application) / Post Receivership, Remuneration and Release Orders

Legal Issues

  1. 1 What is the reasonable remuneration for interim receivers/managers appointed by the court?
  2. 2 Should final accounts be dispensed with?
  3. 3 Should a release be granted to the receivers?

Ratio Decidendi

In the context of an interim court-appointed receivership, the proper function of the receivers was to secure and preserve the company's business and assets rather than to undertake extensive investigations or interventions. Remuneration should reflect only work that was reasonable and necessary to those functions and is fixed at $60,500 inclusive of GST. Dispensation with filing further accounts is appropriate where the cost and duplication outweighs any benefit, and release is proper in the absence of foreshadowed claims, subject to a three-month period for potential claims.

Court Disposition

Receivers' remuneration reduced and fixed at $60,500 inclusive of GST; dispensation with final accounts; release granted subject to three-month claim window.

Orders

  • The remuneration of the applicants as receivers and managers of Say Enterprises Pty Ltd is fixed at $60,500 (inclusive of GST).
  • The requirement under UCPR r 26.5 to file and pass any further accounts is dispensed with.