Australian Executor Trustee Ltd v Provident Capital Ltd [2018] FCA 439

FEDERAL COURT OF AUSTRALIA

Australian Executor Trustee Ltd v Provident Capital Ltd [2018] FCA 439 File number: NSD 808 of 2012

Judge: RARES J

Date of judgment: 3 April 2018

Catchwords: CORPORATIONS – application for approval of receivers' remuneration under Corporations Act 2001 (Cth) s 425 – whether charges claimed reasonable and proportionate to quality and complexity of work, time spent, and value and nature of property – where receivers retained consultant for several years and on-charged services to company at rate significantly higher than retainer – whether receivers acted reasonably in failing to consider using powers under s 420(2)(o) to cause company to retain consultant directly at much lower cost to estate – whether quantum of approved remuneration should be discounted – whether allowance should be given to receivers for providing some services to consultant

Legislation: Corporations Act 2001 (Cth) s 425

Cases cited: Australian Executor Trustees Ltd v Provident Capital Ltd (2012) 203 FCR 461 Australian Executor Trustees Ltd v Provident Capital Ltd (No 3) [2012] FCA 1253 Australian Executor Trustees Ltd v Provident Capital Ltd (Receivers and Managers Appointed) (In Liq) [2016] FCA 337 Blairgowrie Trading Pty Ltd v Allco Finance Group Ltd (In Liq) (2017) 343 ALR 476 In the matter of Banksia Securities Ltd (in liq) (receivers and managers appointed) [2017] NSWSC 540 Sanderson as Liquidator of Sakr Nominees Pty Ltd (in liquidation) v Sakr (2017) 93 NSWLR 459 Templeton v Australian Securities Investments Commission (2015) 108 ACSR 545 Warner, Re GTL Tradeup Pty Limited (in liq) (2015) 104 ACSR 633