Lawrence, in the matter of Ozifin Tech Pty Ltd (in liq) v AGM Markets Pty Ltd (in liq) [2022] FCA 1478

Federal Court of Australia

Lawrence, in the matter of Ozifin Tech Pty Ltd (in liq) v AGM Markets Pty Ltd (in liq) [2022] FCA 1478 File number(s): VID 313 of 2021 VID 235 of 2021 VID 211 of 2021

Judgment of: BEACH J

Date of judgment: 9 December 2022

Catchwords: CORPORATIONS – liquidation – application by liquidators for directions – disbursal of funds – funds in accounts – statutory trusts – s 981H of the Corporations Act 2001 (Cth) – constructive trusts – breach of fiduciary duties – conflict of interest – institutional constructive trust – remedial constructive trust – priorities – investors' claims – directions to deal with trust funds – liquidators' claims for remuneration – payment of remuneration from client accounts – recourse to trust assets – payment of remuneration out of trust assets – payment out of statutory trust funds – payment out of constructive trust funds – inter-company claims – equitable jurisdiction to remunerate a trustee – general expenses of liquidation being borne by trust assets – orders and directions made

Legislation: Corporations Act 2001 (Cth) ss 471B, 544, 556, 981A, 981B, 981H, 983D, 983E, Schedule 2 ss 60-10, 60-12, 90-15, 90-20 Trustee Act 1958 (Vic) s 63 Corporations Regulations 2001 (Cth) reg 7.8.03

Cases cited: 13 Coromandel Place Pty Ltd v CL Custodians Pty Ltd (in liq) (1999) 30 ACSR 377 Australian Securities and Investments Commission v AGM Markets Pty Ltd (in liq) (No 3) (2020) 275 FCR 57 Australian Securities and Investments Commission v AGM Markets Pty Ltd (in liq) (No 4) (2020) 148 ACSR 511 Australian Securities and Investments Commission v Rowena Nominees Pty Ltd (2003) 45 ACSR 424 Black v S Freedman & Co (1910) 12 CLR 105 Brisconnections Management Company Ltd v Dalewon Pty Ltd (in liq) (2010) 79 ACSR 530 Canehire Pty Ltd v Themis Holdings Pty Ltd [2016] 1 Qd R 296 Freelance Global Ltd (in liq) v Bensted [2016] VSC 181 Georges, in the matter of Sonray Capital Markets Pty Ltd (in liq) [2010] FCA 1371 Giumelli v Giumelli (1999) 196 CLR 101 Gollant, in the matter of OT Markets Pty Ltd (in liq) [2020] FCA 207 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 In re Berkeley Applegate (Investment Consultants) Ltd (in liq); Harris v Conway [1989] 1 Ch 32 In re MF Global Limited (in liq) (No 2) [2012] NSWSC 1426 In re Universal Distributing Company Ltd (in liq) (1933) 48 CLR 171 In the matter of AAA Financial Intelligence Ltd (in liq) [2014] NSWSC 1004 In the matter of Aberdeen All Farm Pty Ltd (in liq) [2020] NSWSC 770 In the matter of BBY Limited (rec & mgrs apptd) (in liq) (No 3) [2018] NSWSC 1718 In the matter of Glenvine Pty Ltd (in liq) [2020] NSWSC 866 In the matter of Houben Marine Pty Ltd (in liq) [2018] NSWSC 745 In the matter of JML Property Services Pty Ltd (in liq) [2018] NSWSC 1069 In the matter of M & J Super Fund Pty Ltd (in liq) [2021] NSWSC 279 In the matter of North Food Catering Pty Ltd [2014] NSWSC 77 In the matter of Primespace Property Investment Ltd (in liq) [2016] NSWSC 1821 Kelly, in the matter of Halifax Investment Services Pty Ltd (in liq) (No 6) [2019] FCA 2111 McNab v Graham (2017) 53 VR 311 Muschinski v Dodds (1985) 160 CLR 583 Nolan v Nolan [2004] VSCA 109 Paragon Finance Plc v DB Thakerar & Co (a firm) [1999] 1 All ER 400 Park v Whyte (No 4) (2019) 2 Qd R 412 Parsons v McBain (2001) 109 FCR 120 Re application of Sutherland (2004) 50 ACSR 297 Re Courtenay House Capital Trading Group Pty Ltd (in liq) (2018) 125 ACSR 149 Re Courtenay House Capital Trading Group Pty Ltd (in liq) (2019) 139 ACSR 469 Re G B Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674 Re Greater West Insurance Brokers Pty Ltd (2001) 39 ACSR 301 Re Independent Contractor Services (Aust) Pty Ltd (in liq) (No 2) (2016) 305 FLR 222 Re MF Global Australia Ltd (in liq) (2012) 267 FLR 27 Re Owen (2014) 225 FCR 541 Re Sutherland; French Caledonia Travel Service Pty Ltd (in liq) (2003) 59 NSWLR 361 Shannon v JMA Accounting Pty Ltd [2005] QSC 240 Staatz v Berry (No 3) (2019) 138 ACSR 231 Templeton v Australian Securities and Investments Commission (2015) 108 ACSR 545 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669