In the matter of Mulcox Pty Limited (in liquidation)

Mulcox Pty Limited, a company in liquidation, sought to enforce an equitable charge that secured the right of indemnity vested in the liquidator. The trustee company of two trusts, which owned properties in its capacity as trustee of one of those trusts, had entered into liquidation. The beneficiary of one of the trusts opposed the sale orders, proposing to be appointed as trustee instead, to make cash gifts to the trusts to be used for payment of trust debts and avoid the need for the sale of the properties, and proffered some security for the liquidator’s remuneration. The legal issues in the case were whether the liquidator could be appointed as receiver and manager to enforce the equitable charge, and whether the alternative course proposed by the beneficiary was appropriate. The court found that the liquidator could be appointed as receiver and manager to enforce the equitable charge. The court found that the alternative course proposed by the beneficiary was not appropriate because it would not adequately protect the interests of all parties involved, including the creditors of the company in liquidation. The court granted the application for the liquidator to be appointed receiver and manager. The beneficiary's proposal to be appointed as trustee and make cash gifts to the trusts was rejected as it did not provide sufficient protection for the interests of all parties involved.