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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…