SHEPHARD v COLEMAN [2013] NZHC 3317

SHEPHARD v COLEMAN [2013] NZHC 3317

Administration ended on 1 March 2011 under s 239E(2)(b); respondent's claimed work after that date is not recoverable as administrator's remuneration; having assessed the hours, value and lack of benefit to the company, the reasonable remuneration payable to the administrator is fixed at NZD 12,650 and the respondent is additionally entitled to a preferential disbursement of NZD 711.77; disputed legal invoices (Oceanlaw and Stace Hammond) and post-administration fees are not payable as preferential claims.

Citation
[2013] NZHC 3317
Parties
Liquidator (applicant): Iain Bruce Shephard; Liquidator (applicant): Christine Margaret Dunphy; Former Administrator (respondent): Peter Coleman
Court
High Court
Jurisdiction
New Zealand
Judgment Date
11 December 2013
Procedural Posture
Application Under Companies Act 1993 (administration/liquidation) / Application to Fix Administrator's Remuneration; Judgment Delivered 11 December 2013
Outcome
Judgment for applicants fixing administrator remuneration and declaring administration ended 1 March 2011; respondent's post-administration claims disallowed; no costs awarded against respondent.
Legal Topics
Administration Under Part 15 a, Administrator Remuneration, Watershed Meeting and Convening Period, Preferential Creditor Claims (schedule 7), Court Supervision Under S 284
Company Law Insolvency and Liquidation Administrative Law Remuneration Law Administration Under Part 15 a Administrator Remuneration Watershed Meeting and Convening Period Preferential Creditor Claims (schedule 7) +1 more

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Parties

Iain Bruce Shephard

Liquidator (applicant)

Christine Margaret Dunphy

Liquidator (applicant)

Peter Coleman

Former Administrator (respondent)

Procedural Posture

Application Under Companies Act 1993 (administration/liquidation) / Application to Fix Administrator's Remuneration; Judgment Delivered 11 December 2013

Legal Issues

  1. 1 On what date did the respondent's administration end?
  2. 2 What is reasonable remuneration for the administrator?
  3. 3 Is respondent entitled to claim remuneration for any period after administration ended?

Ratio Decidendi

Administration ended on 1 March 2011 under s 239E(2)(b); respondent's claimed work after that date is not recoverable as administrator's remuneration; having assessed the hours, value and lack of benefit to the company, the reasonable remuneration payable to the administrator is fixed at NZD 12,650 and the respondent is additionally entitled to a preferential disbursement of NZD 711.77; disputed legal invoices (Oceanlaw and Stace Hammond) and post-administration fees are not payable as preferential claims.

Court Disposition

Judgment for applicants fixing administrator remuneration and declaring administration ended 1 March 2011; respondent's post-administration claims disallowed; no costs awarded against respondent.

Orders

  • Declare that the respondent's administration of the company ended on 1 March 2011.
  • Respondent is not entitled to be paid remuneration for attendances after 1 March 2011 and is not entitled to recover the Oceanlaw or Stace Hammond outstanding accounts.