Maloney, in the matter of ZYX Learning Centres Ltd (formerly ABC Learning Centres Ltd) (in Liq) [2016] FCA 398

Maloney, in the matter of ZYX Learning Centres Ltd (formerly ABC Learning Centres Ltd) (in Liq) [2016] FCA 398

A final distribution occurs where, following payment of priority creditors and anticipated expenses, insufficient property remains to cover costs of adjudicating remaining claims; liquidator is thereby justified in paying residual funds to ASIC and bears no liability for further distribution-related expenses.

Jurisdiction
Australia
Judgment Date
12 April 2016
Procedural Posture
Application for Declarations and Directions in Liquidation / Judgment and Orders
Outcome
Declarations and directions granted as sought.
Legal Topics
['liquidation' 'final Distribution' 'corporate Insolvency']
['corporations Law'] ['liquidation' 'final Distribution' 'corporate Insolvency']

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Procedural Posture

Application for Declarations and Directions in Liquidation / Judgment and Orders

Legal Issues

  1. 1 ["Meaning of 'final distribution' in liquidation under Corporations Act 2001 (Cth), s 544(1)(b)" 'Whether liquidator is liable for expenses to adjudicate remaining unsecured claims with insufficient funds']

Ratio Decidendi

A final distribution occurs where, following payment of priority creditors and anticipated expenses, insufficient property remains to cover costs of adjudicating remaining claims; liquidator is thereby justified in paying residual funds to ASIC and bears no liability for further distribution-related expenses.

Court Disposition

Declarations and directions granted as sought.

Orders

  • ['Declaration that final distribution has been made for purposes of s 544(1)(b).' 'Declaration that liquidator not liable for expenses to distribute residual funds due to insufficient property.' 'Direction that liquidator may pay residual funds to ASIC.' 'Costs are to be costs in the winding up of the companies.']