Australian Executor Trustees Ltd v Provident Capital Ltd, in the matter of Provident Capital Ltd (receivers and managers appointed) (in liq) [2013] FCA 1461

FEDERAL COURT OF AUSTRALIA

Australian Executor Trustees Ltd v Provident Capital Ltd, in the matter of Provident Capital Ltd (receivers and managers appointed) (in liq) [2013] FCA 1461 Citation: Australian Executor Trustees Ltd v Provident Capital Ltd, in the matter of Provident Capital Ltd (receivers and managers appointed) (in liq) [2013] FCA 1461

Parties: AUSTRALIAN EXECUTOR TRUSTEES LIMITED ACN 007 869 794 v PROVIDENT CAPITAL LIMITED ACN 982 735 573 (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION)

File number: NSD 808 of 2012

Judge: RARES J

Date of judgment: 24 December 2013

Catchwords: TRUSTS AND TRUSTEES – Court-appointed receivers, liquidators and trustees – duties to the Court – duty of Court-appointed officer to immediately inform Court of conflict of interest or duty affecting him or her in the performance of his or her office – institution of proceedings by Court-appointed receivers against partners in receivers' firm – whether receivers must be discharged because of a real or substantial possibility of conflict between his or her personal interests or duties and those of the estate being administered pursuant to Court order – Court's power to refer segregated part of receivership or liquidation by Court-appointed officer to an independent receiver or liquidator – whether segregated part of receivership should be referred to independent receiver EQUITY – fiduciary duties – whether "Chinese wall" sufficient to address a real possibility of conflict of interest or duty where Court-appointed receiver brings or may need to bring proceedings against one or more of his or her own partners