In the matter of Absolute Vision Technologies Pty Ltd (subject to deed of company administration)

Absolute Vision Technologies Pty Ltd was the subject of a deed of company administration, and an application was made for judicial advice regarding the disposition of certain property. The application was brought by the company's liquidators, and the matter was heard by the Federal Court. The primary issue before the court was whether the property in question was trust property and, if so, whether it or the proceeds of its sale should be transferred to an incoming trustee following a change of trustee.

The court examined the terms of the trust deed and relevant statutory provisions to determine the nature of the property and the obligations of the parties involved. It was established that the property was indeed trust property, and the question arose as to whether it or the proceeds of its sale should be transferred to the incoming trustee upon a change of trustee. The court considered the relevant statutory provisions and case law to determine the proper course of action in this situation.

The court held that, upon a change of trustee, the property or the proceeds of its sale must be transferred to the incoming trustee. This was based on the principle that the trust property should remain within the trust and be managed by the trustee appointed under the trust deed. The court found that the terms of the trust deed and relevant statutory provisions supported this conclusion. The court also noted that the incoming trustee had a duty to ensure that the trust property was properly managed and that the interests of the beneficiaries were protected.

The court made an order that the property or the proceeds of its sale be transferred to the incoming trustee, in accordance with the terms of the trust deed and relevant statutory provisions. The liquidators of Absolute Vision Technologies Pty Ltd were directed to take the necessary steps to facilitate the transfer of the property or proceeds of sale to the incoming trustee. This decision provides important guidance for liquidators and trustees dealing with changes of trustee and the disposition of trust property.