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More holes than a block of swiss cheese

Registered bankruptcy trustee remuneration is in the news again, thanks to the annual report produced by Australian Financial Security Authority (AFSA). It really should not be! AFSA have concluded that the remuneration system doesn’t appear to be working effectively and that the level of dissatisfaction with remuneration is higher than the yearly number of complaints…

Federal Court dabbling in insolvent trustee company law

Another case on trusts and insolvent corporate trustees was handed down recently, this time by Derrington J in the Federal Court. Much longer decision than the Amerind, High Court, one recently! Main things to take away: — sham unit trust created when members of a community put money together for the purpose of purchasing properties —…

Mossgreen part 2

Breaking: the appeal to the Full Federal Court by the Administrators of Mossgreen in relation to their right to be paid for dealing with consigned goods has been dismissed. Around $1 million in fees and costs (possibly) down the drain! In summary, the Full Federal Court has confirmed that the Administrators did not enjoy an equitable…

Receiver’s, think first before charging a margin on top of your consultant’s time charges

Should Receivers charge a margin on top of their consultants time when conducting Receiverships? The Federal Court has today said no; even labelling it “an error of judgment or oversight”. The case involved a very difficult and complex Receivership, spanning 30+ months and $hundreds of millions in assets. The consultant in question had been engaged for the some 3,154 hours…

Killarnee part 2

The Full Federal Court has just handed down its decision in the much anticipated Killarnee decision on trust assets and liquidations. The Court has held (in summary): (a) the Trust Assets at the time of the winding-up of Killarnee are not assets of the Company and therefore not capable of being sold by the Liquidator, pursuant to s477…

VA’s appointment wrong, but we will still pay you

At the end of last year, the Federal Court handed down a decision that, respectfully, I’m feeling conflicted about. On the one hand, of course an Administrator (“VA”) should be paid for their reasonable remuneration. Even if the appointment is invalid due to circumstances outside of the VA’s control. But on the other hand, if the VA is invalid…