In the matter of HIH Holdings Pty Ltd (in liq) [2022] NSWSC 1355

Supreme Court New South Wales

Medium Neutral Citation: In the matter of HIH Holdings Pty Ltd (in liq) [2022] NSWSC 1355 Hearing dates: 14 September 2022 Date of orders: 14 September 2022 Decision date: 14 September 2022 Jurisdiction: Equity - Corporations List Before: Black J Decision: Orders made in accordance with the short minutes of order initialled and placed in the file approving the distribution of the surplus and payment of the liquidators' remuneration Catchwords: CORPORATIONS — Winding up — Liquidators — Remuneration — Where liquidators seek orders relating to the distribution of a surplus in respect of the liquidation and the payment of their remuneration Legislation Cited: Corporations Act 2001 (Cth), s 488(2), s 1322(4) Cases Cited: - Re DS Millard & Son Pty Ltd (1997) 24 ACSR 71 - Re Dave Lahood Pty Ltd (in liq) [2015] NSWSC 1214 - Re FAI Car Owners Mutual Insurance Company Pty Ltd (2009) 76 ACSR 164 - Sanderson as Liquidator of Sakr Nominees Pty Ltd (in liquidation) v Sakr (2017) 93 NSWLR 459; [2017] NSWCA 38 Category: Procedural rulings Parties: Jason Preston and Katherine Sozou in their capacity as liquidators of HIH Holdings Pty Ltd (in liq) Representation: Counsel: J McMeniman (Plaintiff)

Solicitors: Ashurst Australia (Plaintiff) File Number(s): 2004/182176 (006)

Judgment – ex tempore (Revised 20 September 2022) – special leave to distribute surplus assets and past and future remuneration of liquidators

Background 1. By Interlocutory Process filed on 15 August 2022, Mr Preston and Ms Sozou ("the liquidators") in their capacity of liquidators of HIH Holdings Pty Ltd (in liq) ("Holdings") apply for orders relating to the distribution of surplus in respect of the liquidation of Holdings and their past and future remuneration. The amounts involved are not large, but nonetheless the application is properly made, because there are statutory requirements in respect of both the approval of distribution of the surplus and the payment of the liquidators' remuneration in the relevant circumstances, which require that the relevant application be made to the Court. The application is made, in respect of Holdings, prior to a foreshadowed application to deregister the last of the HIH companies, which will be a significant development in a long running liquidation. Ancillary relief is also sought under s 1322(4) of the Corporations Act 2001 (Cth) ("Act") in respect of aspects of the application.