Griffiths (Receiver and manager, and liquidator) of Samandac Pty Ltd (in liq) v Trustee for Chrisamanda Trust (No 2)

In the case of Griffiths (Receiver and manager, and liquidator) of Samandac Pty Ltd (in liq) v Trustee for Chrisamanda Trust (No 2), the applicant, Mr Griffiths, sought payment of costs, expenses, and remuneration from the trust assets for his services as receiver and manager of a trust, and as liquidator of the associated company. The Federal Court was required to determine whether the applicant was entitled to recover his costs and remuneration from the trust assets.

The primary legal issue was whether the applicant, as liquidator and receiver and manager, was entitled to recover his costs and remuneration from the trust assets. The court considered the nature of the applicant’s role, the steps taken by him, and the precedent set in previous cases. The court noted that a liquidator appointed to act as trustee is generally entitled to recover costs from the trust assets, and this principle should extend to pre-liquidation administration approved by the company’s creditors.

The court found that the applicant was entitled to recover his costs and remuneration from the trust assets. The court accepted the applicant's evidence regarding the extensive steps taken by him in managing the trust and the company, including overseeing the sale of the business, liaising with creditors and debtors, and handling legal and statutory obligations. The court also noted the approval by the company’s creditors of the applicant’s future remuneration as liquidator. Based on these findings, the court granted the application for payment of costs, expenses, and remuneration from the trust assets.

The final orders of the court included the payment of the applicant's costs, expenses, and remuneration from the trust assets, the specific amount of remuneration allowed, and the granting of leave to dispense with the requirement to pass the final accounts for acting as receiver and manager of the trust beyond a summary of receipts and payments.