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Australian Securities and Investments Commission v Letten (No 9) [2010] FCA 1459

by Hilary Kincaid 13. January 2011 10:57

Facts

This case concerned an application for an interim claim for remuneration, costs and expenses by receivers of a number of schemes subject to a pooling order. The claim was for immediate payment of 85% of the amounts claimed with an undertaking by both the receivers and their firm to repay any amount received over that which is ultimately assessed. The receivership was ongoing with work still to be performed but had been ongoing for approximately ten months without payment.

 

Outcome

Section 601EE of the Corporations Act 2001 (Cth) and the court’s inherent power to control receivers appointed by it were sufficient power to make the orders: [13]. The orders were made subject to safeguards to protect stakeholders including the undertaking referred to above, filing and serving certificates upon drawing down of funds setting out the amounts drawn from each scheme, and prior to the review by the Registrar to fix the amounts claimed stakeholders may file notice of any claims to which they object: [14].

 

As to the 85% figure, it was acknowledged by the court that it was an arbitrary figure, but it was held to be appropriate, noting that a broad brush approach is suitable in such cases: [17].

 

Relevant paragraphs of Ford

[22.511]

Tags:

Ford's Principles of Corporations Law



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