In the matter of PrimeSpace Property Investment Limited (in liquidation) [2018] NSWSC 2001

Supreme Court New South Wales

Medium Neutral Citation: In the matter of PrimeSpace Property Investment Limited (in liquidation) [2018] NSWSC 2001 Hearing dates: 16 October 2018 (last submissions 23 November 2018) Decision date: 24 December 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: Judicial advice given that the Liquidators are justified in paying their remuneration for the period 25 June 2016 to 30 June 2018 from funds held by PPIL on trust. Judicial advice given that the Liquidators are justified in distributing funds held by PPIL in its personal capacity to reimburse it, as trustee for PSNT, for amounts that were paid by PPIL as trustee for PSNT, on behalf of PPIL as trustee for PAPF and PSPT3 to the extent that PPIL does not hold sufficient funds on trust for PAPF or PSPT3 to reimburse itself as trustee for PSNT. Catchwords: CORPORATIONS – external administration – application for direction that liquidators of company are justified in acting in accordance with remuneration approvals given by committee of inspection – where remuneration claimed amounts to a large proportion of amounts recovered due to complexity of liquidation – whether liquidators are justified in acting in accordance with remuneration approvals – where company is trustee of a trading trust and has no other activities – whether liquidators should be permitted to recover remuneration from trust assets. Legislation Cited: - Corporations Act 2001 (Cth) ss 479, 511 - Trustee Act 1925 (NSW) s 63 Cases Cited: - Re AAA Financial Intelligence Ltd (in liq) [2014] NSWSC 1004 - Re Banksia Securities Ltd (in liq) (rec and mgr apptd) [2017] NSWSC 540 - Re EMA Consulting Engineers Pty Ltd (in liq) [2018] NSWSC 1993 - Re Killarnee Civil & Concrete Contractors Pty Ltd (in liq) [2018] FCAFC 40 - Re Primespace Property Investment Ltd (in liq) [2016] NSWSC 1821 - Re Primespace Property Investment (in liq) [2016] NSWSC 1113 - Sakr Nominees Pty Ltd (in liq) v Sakr [2017] NSWCA 38 Category: Procedural and other rulings Parties: Shaun Robert Fraser (First Plaintiff) Anthony Gregory McGrath (Second Plaintiff) PrimeSpace Property Investment Limited (Third Plaintiff) IQIT Nominees Pty Ltd as trustee for the IQ Investment Trust (Defendant) Representation: Counsel: V Whittaker SC/J Anderson (Plaintiffs)