Hillig (Liquidator), in the matter of SKC & Co Pty Ltd (in liquidation)

The matter before the court involved the liquidator of SKC & Co Pty Ltd, a company in liquidation, who sought to be appointed as the receiver and manager of the property, assets, and undertakings of the SKC Family Trust. The trust had no current trustee, as the former corporate trustee, SKC & Co Pty Ltd, had been appointed a liquidator. The trust's business involved the sale of spare parts for American and Japanese trucks, with estimated assets of $233,500 and liabilities of $729,000. The liquidator sought the appointment to manage and realise the trust's assets promptly to benefit the company's creditors.

The central legal issue before the court was whether it was appropriate to appoint the liquidator as the receiver and manager of the family trust under section 57 of the Federal Court of Australia Act 1976. The court considered the general principles for appointing a receiver, including the protection or preservation of property for the benefit of interested parties, and the specific context where a former trustee's right of indemnity needed securing from trust assets. The court also needed to determine the appropriate terms and conditions for such an appointment.

The court found it just and convenient to appoint the liquidator as the receiver and manager of the trust's assets. It considered the urgency of realising the trust's assets, the potential loss of value if not acted upon promptly, and the necessity of enforcing the company's indemnity against the trust's assets. The court outlined the powers of the receiver, including the ability to manage and deal with the property according to state or territory laws, and to realise the assets of the trust to meet the company's liabilities. The court also addressed the liquidator's costs and remuneration, setting a cap on out-of-pocket expenses and allowing for further applications if necessary.

The court's orders included appointing the liquidator as the receiver and manager of the family trust's assets, granting the liquidator specified powers to manage and realise those assets, and setting terms for the liquidator's remuneration and costs. The orders also provided for the priority payment of the liquidator's costs from the trust's assets and allowed for applications to vary or discharge the orders by interested parties.