IMO Traditional Values Management Limited (in liq)

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL AND EQUITY DIVISION

CORPORATIONS LIST

S CI 2011 1355

GEOFFREY NIELS HANDBERG and BRENT LEIGH MORGAN (in their capacity as joint and several Liquidators of Traditional Values Management Limited (in Liquidation) (Receiver Appointed) (ACN 055 106 100))	First Plaintiffs
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Traditional Values Management Limited (in Liquidation) (Receiver Appointed) (ACN 055 106 100)	Second Plaintiff

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JUDGE:	GARDINER AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	20 June 2012
DATE OF JUDGMENT:	14 December 2012
CASE MAY BE CITED AS:	IMO Traditional Values Management Limited (in liq)
MEDIUM NEUTRAL CITATION:	[2012] VSC 650

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CORPORATIONS – External administration – Application by liquidators for remuneration in connection with liquidation of responsible entity of managed investment scheme.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiffs	Mr H Austin	Mills Oakley
For the contradictor Mr Neil Campbell	Mr M Galvin	Middletons

HIS HONOUR:

1. On 14 June 2011, Ferguson J made orders in this proceeding dealing with the issue of remuneration and expenses of the first plaintiffs (“the liquidators”) in connection with their capacity as the joint and several liquidators of Traditional Values Management Limited (in liquidation) (“TVM”). 

1. Those orders provided, inter alia, as follows:

THE COURT ORDERS THAT:

2.…  subject to Order 6[1] below:

(a)the Liquidators be paid the Remuneration and Expenses from the Scheme Assets; and

(b)The Liquidators be indemnified out of, and have an equitable lien over, the Scheme Assets for all the Remuneration and Expenses.

3.Directs pursuant to s 511 of the Act that the liquidators would be justified and would otherwise be acting reasonably in causing the Remuneration and Expenses under Order 2 to be paid from the Scheme Assets.

[1]Order 6 made procedural directions regarding the conduct of this application.

1. Ferguson J’s orders appended a schedule setting out definitions to be applied in the construction of her order:

“Remuneration” is defined as meaning … “such remuneration of the Liquidators as the Court will approve in respect of their administration of TVM as voluntary administrators and liquidators of TVM being remuneration incurred in:

(j)investigating the Scheme and the Scheme Assets, including ascertaining the nature, value and position of the assets and liabilities relevant to the Scheme;

(k)identifying claims which may be brought to benefit the Scheme Assets or reduce other claims against Scheme Assets;

(l)causing TVM to administer the Scheme in accordance with the Act and the constitution of the Scheme;

(m)obtaining control of the Scheme Assets;

(n)the care, preservation and realisation of Scheme Assets and identifying appropriate steps in relation thereto;

(o)causing TVM to wind up the Scheme in accordance with the Act and the constitution of the Scheme;

(p)identifying parties who may claim an entitlement in respect of the Scheme Assets;

(q)reviewing and dealing with claims by any person to any entitlements in respect of the Scheme Assets;

(r)instructing lawyers to:

(i)advise in relation to any of the matters referred to above; and

(ii)commence this application.

“Scheme Assets” are defined as meaning … “the assets held…