Liquidators’ remuneration – “most businesses do not charge out that way”

A Judge apologised at the start of his judgment for the length of time he took to determine liquidators’ remuneration.  On reading the judgment, and the tedium involved in the assessment, one can understand why he took time: six minute units of opening mail, clearing in-trays and filing paperwork, receiving payment instalments and explaining work […]

A liquidator who stood to lose fees if his proceedings were not able to proceed

A company liquidator had unpaid fees amounting to $352,383 in his administration of a liquidated company – All Class – which had been left with no assets.  He brought Federal Court proceedings against an insurer – Chubb – for payment of a claim in relation to theft by the company’s employees.  His solicitors and counsel […]

Liquidator’s registration cancelled by ASIC

A company liquidator has had her registration cancelled following a decision by a statutory disciplinary committee that she had improperly used her position, falsified books and misappropriated over $238,500 from four liquidations over a period of time and was thereby not a fit and proper person to remain registered. See Report of committee convened to […]

Insolvency litigation funding – too much hand-holding?

A joint parliamentary inquiry into class actions and litigation funding has set down public hearings throughout July 2020.[1] The inquiry and some of its submissions indirectly prompt some insolvency law reform ideas. A UK inquiry into the impact of the Jackson reforms on insolvency litigation funding is explained in an earlier comment. The original “class […]

Leave to proceed against a bankrupt; but with questions about the legal representation

In an employee’s otherwise ordinary unpaid wages case the respondent employer went bankrupt mid- hearing and the employee’s legal representation was found by the Judge to be questionable. The matter concerned a Ms Ross’ employment at the Bombora Café, located, as the Judge describes, at Norah Head “sandwiched between Tuggerah Lake, Soldiers Point and Cabbage […]

Important rules in reviewing registrars’ sequestration orders

Chief Justice James Allsop of the Federal Court of Australia has written, both in his judgments and extra-judicially,[1] of the fundamental importance of personal bankruptcy law in our legal system, and as to the ‘human consequences that attend the change of status and the change of lives of people who are made bankrupt’.[2] That importance […]

Preferences paid by company under a DOCA – based upon a reading of the section

A company under a 2013 deed of company arrangement made payments to the Deputy Commissioner of Taxation. The deed was terminated in 2017 and the company went into liquidation. The liquidators successfully recovered the payments from the DCT as unfair preferences. Justice Middleton of the Federal Court of Australia applied statutory interpretation principles in coming […]

Ponzi investors suing ANZ Bank for their losses

The ANZ Bank has failed to have struck out a claim against it by investors in what was the largest Ponzi scheme New Zealand’s history – Ross Asset Management Limited (RAM). It collapsed in 2012 and its operator went to jail. Losses were around NZ$115 million with at least 700 victims, including many who were […]