Pirina, in the matter of Fund Options (Australia) Pty Ltd (in liquidation) (No 2) [2023] FCA 681

FEDERAL COURT OF AUSTRALIA

Pirina, in the matter of Fund Options (Australia) Pty Ltd (in liquidation) (No 2) [2023] FCA 681 File number: NSD 1383 of 2018

Judgment of: FARRELL J

Date of judgment: 21 June 2023

Catchwords: BANKRUPTCY AND INSOLVENCY – where company voluntarily wound up – whether binary options business was a scam – characterisation of funds held to the credit of bank accounts – whether date of liquidation has significance to distribution method – whether pari passu method of distribution appropriate – whether lowest intermediate balance rule applicable – whether hybrid method of distribution appropriate – how international transaction fees to be paid – remuneration of liquidators

Legislation: Corporations Act 2001 (Cth) s 544; Part 9.7 Corporations Act 2001 (Cth) Sch 2, Insolvency Practice Schedule (Corporations) ss 60-10, 60-12, 90-15

Cases cited: Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Black v S Freedman & Co (1910) 12 CLR 105 Caron and Seidlitz v Jahani and McInerney in their capacity as liquidators of Courtenay House Pty Ltd (in liq) & Courtenay House Capital Trading Group Pty Ltd (in liq) (No 2) [2020] NSWCA 117; (2020) 102 NSWLR 537 In the matter of Courtenay House Capital Trading Group Pty Limited (in liquidation) and Courtenay House Pty Limited (in liquidation) [2019] NSWSC 1113 In the matter of Courtenay House Capital Trading Group Pty Ltd (in liq) [2020] NSWSC 780 Pirina, in the matter of Fund Options (Australia) Pty Ltd (In Liquidation) [2020] FCA 1256 Re BBY Limited (receivers and managers appointed) (in liq) (No 2) [2018] NSWSC 346; (2018) 363 ALR 492 Re Courtenay House Capital Trading Group Pty Ltd (in liq) and Courtenay House Pty Ltd (in liq) [2018] NSWSC 404 Sanderson as Liquidator of Sakr Nominees Pty Ltd (in liq) v Sakr [2017] NSWCA 38; (2017) 93 NSWLR 459