In the matter of Direct FX Trading Pty Ltd (in liq) (No 2) [2024] NSWSC 1079

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Direct FX Trading Pty Ltd (in liq) (No 2) [2024] NSWSC 1079 Hearing dates: 23 August 2024 Date of orders: 23 August 2024 Decision date: 23 August 2024 Jurisdiction: Equity - Corporations List Before: Nixon J Decision: See [65] Catchwords: CORPORATIONS – winding up – application for directions under s 90-15 of IPSC and for judicial advice under s 63 of Trustee Act 1925 (NSW) – where fund held by liquidator represent moneys held on trust by company for 2,653 individual beneficiaries – where the majority of beneficiaries were owed relatively trivial amounts – where the costs of distributing the fund to all of the beneficiaries would exhaust the fund – whether liquidator justified in distributing fund to those beneficiaries with balances of over $100, on a pro rata basis – whether expenses of application and of distribution of funds should be paid from moneys held on trust Legislation Cited: Corporations Act 2001 (Cth), ss 981A, 981H Trustee Act 1925 (NSW), s 63 Insolvency Practice Schedule (Corporations), ss 90-15, 90-20 Cases Cited: Equititrust Ltd (in liq) (rec apptd) (recs and mgrs apptd) v Equititrust Ltd (in liq) (rec apptd) (recs and mgrs apptd) (No 4) [2017] FCA 1133 In the matter of AAA Financial Intelligence Ltd (in liq) ACN 093 616 445 [2014] NSWSC 1004 In the matter of BBY Limited (Receivers and Managers appointed) (in liquidation) (No 2) [2018] NSWSC 346 In the matter of Direct FX Trading Pty Ltd [2020] NSWSC 1338 Kelly (Liquidator), Halifax Investment Services Pty Ltd (in liquidation) v Loo [2021] FCA 531 Re BBY Ltd (recs and mgrs apptd) (in liq) (No 2) [2018] NSWSC 346 Re MF Global Australia Ltd (in liq) [2012] NSWSC 994 Re Montpac Pty Ltd (in liq) and Global Network Link Pty Ltd (in liq) [2020] NSWSC 1237 Category: Principal judgment Parties: Jason Tracy and Vaughan Strawbridge in their capacity as liquidators of Direct FX Trading Pty Ltd (in liq) (First Plaintiff) Direct FX Trading Pty Ltd (in liq) (Second Plaintiff) Representation: Counsel: C Trahanas (Plaintiffs)