In the matter of Octaviar Administration Pty Limited (in liquidation) [2020] NSWSC 927

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Octaviar Administration Pty Limited (in liquidation) [2020] NSWSC 927 Hearing dates: 6 April 2020 Decision date: 23 July 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Remuneration sought by liquidators approved. Catchwords: CORPORATIONS – liquidator's remuneration – liquidations on foot for more than a decade – complex and large liquidations – remuneration approved thus far is $26 million – liquidators reject proofs of debt of members of committees of inspection – committee of inspection fail to approve further remuneration – impasse – no meeting of creditors called – notice of objection served but no evidence and no appearance – court approval of remuneration under section 473 compared with s 60-10 Insolvency Practice Schedule, at [34]-[39] – infer from duration of liquidations that impracticable to call meeting of creditors to approve remuneration – liquidators' work prior to that for which approval sought not particularly relevant – relevance of expenses at [55] – relevance of remuneration and expenses of special purpose liquidator at [56] – relevance of dividends paid to unsecured creditors [58]-[59] – entitlement to fees of seeking approval [95] – remuneration approved CORPORATIONS – external administration – committees of inspection – function at [15], [41] – responsibility to continue to involve itself in decisions about remuneration Legislation Cited: Corporations Act 2001 (Cth), ss 473(3)(b)(ii), 473(10), 548, 1607, 1608, 1581; Schedule 2, ss 60-10, 80-35; reg 10.25.01; Schedule 13 of the Corporations Regulations 2011 (Cth) Insolvency Law Reform Act 2016 (Cth) Section Cases Cited: Barbo Group Pty Limited v Investment and Construction Enterprise Pty Limited [2012] VSC 71 Deputy Commissioner of Taxation v Starpicket Pty Limited (No 2) [2013] FCA 699 GIS Electrical Pty Ltd v Melson [2001] WASC 314 in In the matter of Nissand Pty Limited (in liq) [2019] VSC 280 In the matter of AAA Financial Intelligence Ltd (in liquidation) (No 2) [2014] NSWSC 1270 In the matter of Aberdeen All Farm Pty Ltd (in liquidation) [2020] NSWSC 770 In the matter of Dungowan Manly Pty Limited [2016] NSWSC 1346 In the matter of JSMOT Pty Limited [2020] NSWSC 549 In the matter of Plutus Payroll Australia Pty Ltd (in liquidation) [2018] NSWSC 1092 In the matter of Prime Space Property Investment Limited (in liquidation) [2016] NSWSC 1821 In the matter of Sakr Nominees Pty Ltd (2017) 93 NSWLR 459; (2017) 118 ACSR 333; [2017] NSWCA 38 In the matter of Sakr Nominees Pty Ltd [2016] NSWSC 709 In the matter of Stockford Limited (subject to Deed of Company Arrangement); (2004) 52 ACSR 279; [2004] FCA 1682 Kennards Hire Pty Limited v RMGA Pty Limited [2010] NSWSC 1387 Onefone Australia Pty Ltd v One.Tel Limited (in liq) [2012] NSWSC 404 Onefone Australia Pty Ltd v One.Tel Ltd (2008) 69 ACSR 290; [2008] NSWSC 1335 Re Banksia Securities Ltd [(in liq) (recs and mgrs. apptd) [2017] NSWSC 540 Re Earning Pty Limited (in liq) [2019] VSC 152 Re Huxtable, Timeshare Resort Club Ltd (2010) 187 FCR 13; [2010] FCA 673 Re Idylic Solutions Pty Ltd atf Super Save Superannuation Fund [2016] NSWSC 1292 Re Interchase Co Ltd (In Prov Liq) (1993) 44 FCR 501 Re Octaviar Limited (in liq) [2019] QSC 235 Re Perdives Pty Limited [2015] QSC 230 at 321; Park v Whyte (No 2) [2018] Qd R 413 Re Ricki Pty Ltd [2015] NSWSC 2048 Re Sakr Nominees Pty Ltd [2017] NSWSC 668 Re Solfire Pty Ltd (in liq) (No 2) [1999] 2 Qd R 182; (1998) 16 ACLC 1156 Re Walker as liquidator of One.Tel Limited [2005] 189 FLR 467 Re Westpoint Finance Pty Limited (in liq) [2018] VSC 705 Starpicket (No 2) [2013] FCA 699 Thackray v Gunns Plantations Ltd (2011) 85 ACSR 144; [2011] VSC 380 Venetian Nominees Pty Ltd v Conlan (1998) 20 WAR 96; 16 ACLC 1653 White, In the matter of Macro Realty Developments Pty Ltd and Macro Realty Pty Ltd [2019] FCA 1377 Texts Cited: Robert P Austin, Austin & Black's Annotations to the Corporations Act (LexisNexis, July 2019) Australian Restructuring Insolvency & Turnaround Association (ARITA) Code of Professional Practice, s 14.8 Category: Principal judgment Parties: William John Fletcher and Katherine Elizabeth Barnet as joint and several liquidators of Octaviar Ltd (in liquidation) and Octaviar Administration Pty Ltd (in liquidation) (First Plaintiffs) Octaviar Limited (in liquidation) (Second Plaintiff) Octaviar Administration Pty Ltd (in liquidation) (Third Plaintiff) Representation: Counsel: J Hynes (Plaintiffs)