Chen & Chen

The case involves a remuneration application by joint and several liquidators and receivers in a complex family law matter. The applicants, Messrs OO and UU, sought approval for their remuneration in relation to several entities, including companies in liquidation and trusts under receivership. The amounts claimed were substantial, with part of the claim pertaining to work yet to be undertaken. The primary legal issues were whether the remuneration for future work was claimable and whether the amounts sought were reasonable and maintainable according to the Insolvency Practice Schedule (Corporations), rule 11.49 of the Federal Circuit and Family Court of Australia Rules 2021, and the court's inherent jurisdiction.

The court found that the primary consideration for approving the remuneration was the reasonableness of the sums claimed. While creditors' approval was relevant, it was not determinative. The court referenced the decision in Re MJM (WA) Enterprises Pty Ltd (in liq) to support the notion that the reasonableness of the claim was the key factor. Additionally, the court noted that when dealing with remuneration from trust assets, it exercised its inherent jurisdiction rather than a statutory one, as per the decision in In the Matter of Houben Marine Pty Ltd (in liq). After considering the evidence and submissions, the court approved the remuneration sought by the joint and several liquidators and receivers.

The court ordered that the liquidators and receivers were entitled to their respective remuneration for the specified periods, as detailed in the reasons for judgment. The court also dispensed with compliance with certain procedural requirements and directed that the costs of the application be recovered from the companies in liquidation and the trusts in receivership. Any interested party was granted liberty to apply to modify the orders, provided they gave at least 72 hours' notice.