Hastings and Hopkins & Ors

In the matter of Hastings and Hopkins & Ors, Justice Wilson of the Family Court of Australia considered the appointment and powers of court-appointed receivers and liquidators in relation to certain trusts and companies. The dispute concerned the administration of the Hopkins Trust and Hopkins Family Trust, and the associated companies acting as trustees.

The court was required to determine the specific powers to be granted to the joint and several receivers of the trusts, and how their remuneration and costs should be met. This involved considering the application of provisions from the Corporations Act 2001 (Cth) to the receivers and liquidators, particularly sections 420 and 477(2), and clarifying the scope of their duties in identifying and recovering trust assets to satisfy creditor claims.

Justice Wilson reasoned that the receivers should be appointed with the powers provided by section 420 of the Corporations Act, as if references to "the corporation" applied to the trusts. Additionally, they were to be vested with the powers of a liquidator under section 477(2) of the Act concerning the property of the companies in their capacity as legal owners and trustees. The court further ordered that the receivers were entitled to be paid their costs, expenses, and remuneration from the rights of exoneration of the respondent companies, as trustees of the trusts. This remuneration was to be calculated at specified hourly rates and was conferred upon the receivers in both their capacities as liquidators and receivers. The court also clarified the types of work encompassed by their duties, including asset identification, creditor distinction, account reconciliation, asset recovery and realisation, and distribution of funds.

The court made specific orders to give effect to these determinations. These included dispensing with the requirement for the receivers to file security and ordering that their costs of obtaining these orders be costs in the winding up of the companies. Liberty to apply was granted to the receivers.