The QLD Supreme Court ruled this month that liquidators (and by extension Voluntary Administrators) of corporate trustees cannot be paid remuneration from trust property for general insolvency work (in this instance).
Let me explain …
* LMIM was corporate trustee of a number of scheme trusts, but never operated in its own capacity
* VA’s and Liq’s were appointed to wind down the affairs of the schemes and LMIM and pay dividends
* LMIM owned no material assets in its own right to pay for the remuneration, but did carry on a “commercial trustee company business”
* Court granted payment for work done in winding down the schemes, but not LMIM
Why? [see paras 34-36 of LM Investment Management Limited & Anor v Whyte [2019] QSC 245]
Because of the numerous trusts involved and the fact that LMIM itself did carry on a business under the eyes of the law.
