In the matter of Independent Contractor Services (Aust) Pty Limited ACN 119 186 971(in liquidation) (No 2) [2016] NSWSC 106

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Independent Contractor Services (Aust) Pty Limited ACN 119 186 971(in liquidation) (No 2) [2016] NSWSC 106 Hearing dates: 1 July 2015; written submissions closed 22 July 2015 Date of orders: 23 February 2016 Decision date: 23 February 2016 Before: Brereton J Decision: Liquidator's remuneration approved in the sum of $30,000 plus GST, and expenses of $12,152. Trust assets to be distributed to trust creditors pari passu. Catchwords: CORPORATIONS – external administration – winding up – distribution of property – statutory order of priority – superannuation guarantee charge liability – where liability is in respect of "employees" within extended definition in (CTH) Superannuation Guarantee (Administration) Act 1992 but not within (CTH) Corporations Act 2001 definition – held, not entitled to priority

CORPORATIONS – liquidators – remuneration – small liquidation with some complexities – ad valorem preferred to time-based remuneration

TRUSTS AND TRUSTEES – rights of trustee – rights of trust creditors – trading trust – where corporate trustee insolvent and in liquidation – distribution of trust assets - where trust liabilities exceed trust assets – whether statutory order of priority on winding up applies – held, it does not – trust creditors rank pari passu in respect of trust assets Legislation Cited: (CTH) Corporations Act 2001, s 446A(1)(a), s 473(3), (10), s 499(3), (3A), s 504(2), s 511, s 556(1)(e), (g), (h). (CTH) Superannuation Guarantee (Administration) Act 1992, s 17, s 19, s 11(1)(ba), s 12(3), s 23, s 33, s 35, s 36. (CTH) Superannuation Guarantee Charge Act 1992, s 6. (CTH) Taxation Administration Act 1953, s 14ZZM, s 14ZZR, Schedule 1 s 12-60, s 250-10, s 255-5. Cases Cited: AAA Financial Intelligence Ltd (in liquidation) ACN 093 616 445 (No 2), In the matter of [2014] NSWSC 1270 AAA Financial Intelligence Ltd (in liquidation) ACN 093 616 445, In the matter of [2014] NSWSC 1004 Alphena Pty Ltd (in liq) v PS Securities Pty Ltd atf Joseph Family Trust [2013] NSWSC 447; (2013) 94 ACSR 160 Anderson Group Pty Ltd, Re [2002] NSWSC 764; (2002) 20 ACLC 1607 Balkin v Peck (1998) 43 NSWLR 706 Bastion v Gideon Investments Pty Ltd [2000] NSWSC 939; (2000) 35 ACSR 466 Beddoe, Re [1893] 1 Ch 547 Blundell, Re (1889) 44 Ch D 1 British Power Traction & Lighting Co Ltd, Re [1910] 2 Ch 470 Bruton Holdings Pty Limited (in liq) v Commissioner of Taxation [2011] FCAFC 79; (2011) 193 FCR 442 Carton Ltd, Re (1923) 39 TLR 194 Chief Commissioner of Stamp Duties (NSW) v Buckle [1998] HCA 4; (1998) 192 CLR 226 Coates v McInerney (1992) 7 WAR 537; 6 ACSR 748; 10 ACLC 616 Dowse v Gorton [1891] AC 190 Evans, Re (1887) 34 Ch D 597 Frith, Re [1902] 1 Ch 342 Gatsios Holdings Pty Ltd v Nick Kritharas Holdings Pty Ltd (2002) ATPR 41-864 Gramarkerr Pty Limited (No 2), In the matter of [2014] NSWSC 1405 Grime Carter & Co Pty Limited v Whytes Furniture (Dubbo) Pty Limited [1983] 1 NSWLR 158 Hellion Protection Pty Ltd (In Liquidation), In the matter of [2014] NSWSC 1299 ICS Real Estate Pty Ltd (in liquidation), In the matter of [2014] NSWSC 479 Jeffray v Webster (1895) 17 ALT 72 Jennings v Mather [1901] 1 KB 108 Johnson, Re (1880) 15 Ch D 548 Kayfords Ltd, Re [1975] 1 WLR 279 Keefe v Law Society of New South Wales (1998) 44 NSWLR 451 Mirror Group Newspapers plc v Maxwell (No 2) [1998] 1 BCLC 638 North Food Catering Pty Ltd, In the matter of [2014] NSWSC 77 Octaviar Limited (in liq), In the matter of [2016] NSWSC 16 Octavo Investments Pty Ltd v Knight [1979] HCA 61; (1979) 144 CLR 360 Official Assignee of O'Neill v O'Neill (1898) 16 NZLR 638 Savage v Union Bank of Australia Ltd [1906] HCA 37; (1906) 3 CLR 1170 Staff Benefits Pty Ltd, Re [1979] 1 NSWLR 207; 4 ACLR 54 Stockford Ltd, Re [2004] FCA 1682; (2004) 52 ACSR 279 Stott v Milne (1884) 25 Ch D 710 Suco Gold Pty Ltd (in liq), Re (1993) 33 SASR 99; (1993) 7 ACLR 873 Sutherland, Re; French Caledonia Travel Service Pty Ltd (in liq), Re [2003] NSWSC 1008; (2003) 59 NSWLR 361; 48 ACSR 97 Universal Distributing Co Ltd (in liq), Re [1933] HCA 2; (1933) 48 CLR 171 Vacuum Oil Pty Ltd v Wiltshire [1945] HCA 37; (1945) 72 CLR 319 Venetian Nominees Pty Ltd v Conlan (1998) 20 WAR 96 Wm Rose & Co Ltd, Re (1897) 3 ALR (CN) 65 Texts Cited: Ford, H A J, Principles of the Law of Trusts. Heydon, J D & Leeming, M J, Jacobs' Law of Trusts in Australia, 7th ed. McPherson, B H, "The Insolvent Trading Trust", in Finn (ed) Essays in Equity (1985). McPherson, B H, Law of Company Liquidation, 4th ed. Meagher, R P, "Insolvency of Trustees", (1979) 53 ALJ 648. Williams, D R, "Winding Up Trading Trusts: Rights of Creditors and Beneficiaries" (1983) 57 ALJ 273 Category: Principal judgment Parties: Bruce Gleeson as liquidator of Independent Contractor Services (Aust) Pty Limited ACN 119 186 971 (in liquidation) (plaintiff) Michael Lee (defendant) Representation: Counsel: A Spencer (plaintiff)