Australian Securities and Investments Commission v Marco (No 4)

The Australian Securities and Investments Commission (ASIC) sought an order for indemnity and reimbursement of costs against the respondents in the context of interim receivers' appointments. The case was heard in the Federal Court of Australia. The primary legal issues the court had to address were whether ASIC should provide any general indemnity to the receivers, and if ASIC should bear the costs of the receivers' reports. The court also considered whether ASIC should meet the expenses of the receivers from the respondents' assets.

The court examined the nature of receiverships under the Corporations Act and the equitable jurisdiction, referencing the earlier case of Australian Securities and Investments Commission v Carey (No 5). It held that while receivers should generally be entitled to their remuneration and expenses, the court should not automatically require the possibly innocent party whose assets are controlled to bear these costs. The court found that the appointment of receivers was desirable in this case, but the issue of who should bear the costs was a significant consideration. Ultimately, the court ruled that ASIC should bear the costs of the receivers' reports, while the receivers should be indemnified from the respondents' assets against liabilities arising under the relevant statute. The court also allowed the receivers to determine and pay certain specified costs from a particular bank account.

The court concluded by making specific orders that reflect its reasons. ASIC was to pay the costs of the receivers' reports. The receivers were to be indemnified from the respondents' assets against certain liabilities. ASIC was to cover any other indemnities required by the receivers. The receivers were also to be entitled to determine and pay certain specified costs from a particular bank account, with liberty to apply for variations to these orders. The costs of the application were reserved.