Hosking, in the matter of Business Aptitude Pty Ltd (in liquidation)

The case of Hosking, in the matter of Business Aptitude Pty Ltd (in liquidation) involved a liquidator seeking to be appointed as the receiver and manager of a trust, formerly managed by the company that had been placed into liquidation. The trust in question, Crosby Family Trust, was a discretionary trust for which Business Aptitude Pty Ltd had been the trustee. The beneficiaries of the trust consented to the liquidator's appointment as receiver and manager. The legal issues before the court centered on whether the liquidator could be appointed as the receiver and manager of the trust, given that the company was no longer a trustee and whether the liquidator had a power of sale over the trust's assets. The court found that the liquidator should be appointed as the receiver and manager to ensure a secure title for the assets of the business, especially considering that the beneficiaries consented to the appointment and that there was no conflict of interest between the roles of liquidator and receiver and manager.

The court reasoned that the appointment of the liquidator as receiver and manager was necessary to manage the trust's assets and discharge the liabilities incurred by the company in its capacity as trustee. The court also noted that there was no apparent conflict between the duties of the liquidator in his roles as liquidator and as receiver and manager. The beneficiaries' consent further supported the appointment. The court further ordered that the liquidator's costs, expenses, and remuneration should be paid from the trust's assets, with a cap on out-of-pocket expenses, and that the liquidator should be paid on a time basis at a reasonable fee. The court also noted that the hearing fee could be waived due to the short duration of the hearing, the lack of opposition, and the limited assets of the trust. Finally, the court granted the liquidator the liberty to apply for approval of his remuneration in the liquidation of the company from the assets of the trust upon the realization of the assets of the trust.