In the matter of BBY Limited (Receivers and Managers appointed) (in liquidation) (No 2) [2018] NSWSC 346

Supreme Court New South Wales

Medium Neutral Citation: In the matter of BBY Limited (Receivers and Managers appointed) (in liquidation) (No 2) [2018] NSWSC 346 Hearing dates: 31 January, 1, 2, 3 February 2017 Date of orders: 19 March 2018 Decision date: 19 March 2018 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: See [400]-[410] Catchwords: CORPORATIONS — Winding up — Conduct of liquidation — Application for directions - Distribution of assets – Distribution of client segregated accounts – the manner in which funds should be distributed per Corporations Regulations reg 7.8.03 - whether reg 7.8.03(6) should be applied separately to each client segregated account – whether liquidators should pool all (or some) of the client segregated accounts –held pooling not directed across product lines.

CORPORATIONS — Winding up — Conduct of liquidation — Application for directions - Distribution of assets – Distribution of recoveries – Returned collateral - whether some or all of the recoveries are beneficially owned or held on trust for clients – how recoveries and returned collateral should be distributed having regard to Corporations Regulations – held recoveries and returned collateral held on trust for clients.

CORPORATIONS — Winding up — Conduct of liquidation — Application for directions -Distribution of assets – Calculation of entitlements – how entitlement to client segregated accounts and recoveries should be calculated – Set off – whether Liquidators are entitled to set off positive net account balances against negative account balances – where accounts are owned by the same client – held, justified in combining balances of individual trading accounts to calculate net position of individual clients without any need to set-off within the same group.