In the matter of ACN 159 605 188 Pty Ltd

A company, ACN 159 605 188 Pty Ltd, was the subject of a review application concerning the remuneration of its administrators and liquidators. The case was heard in the Federal Court of Australia. The applicant sought to review the remuneration paid to the defendants who had acted as the company's administrators and liquidators, alleging that the remuneration was not fair and reasonable as required by the Corporations Act.

The court had to determine whether the remuneration paid to the administrators and liquidators was fair and reasonable under the Corporations Act. Specifically, the court needed to examine if the remuneration of the administrators was disproportionately high and if the remuneration of the liquidators was attended by clear disproportionality. The court was required to consider the terms of the relevant sections of the Corporations Act, including sections 449E(2) and 504(1), which deal with the remuneration of administrators and liquidators respectively.

The court found that while the remuneration of the liquidators was negotiated and not attended by clear disproportionality, the remuneration of the administrators was apparently disproportionately high. The court dismissed the application to review the liquidators’ remuneration but ordered a review of the administrators' remuneration. The court's reasoning was that the administrators' remuneration was not fair and reasonable given the apparent disproportionality, while the liquidators' remuneration did not meet the threshold for review under the Act.

The final orders of the court were to dismiss the application to review the liquidators' remuneration but to order a review of the administrators' remuneration to ensure it was fair and reasonable.