Jess, in the matter of Westside Group Pty Ltd (in liq)

The case of Westside Group Pty Ltd (in liq) involves the Liquidator of Westside Group Pty Ltd, which was wound up on 30 November 2018, and seeks orders to facilitate the distribution of the company's assets. The court was asked to decide whether the Liquidator could proceed on the basis that the company operated solely as the trustee of a trust and whether the Liquidator could be paid from the trust's assets. The central issue was whether the Liquidator could characterise the company's assets as trust property and be paid from those assets.

The court concluded that the Liquidator's view that the company operated solely as the trustee of a trust was supported by the evidence. Given that the company's sole activities were as trustee, and it had no assets of its own apart from its right of exoneration and lien, it was appropriate that the Liquidator's remuneration and expenses be paid out of trust assets. The court cited Jones v Matrix to support this decision. The court also considered the statutory provisions allowing for such orders and concluded that the Liquidator was justified and acting reasonably in proceeding on the basis that he could deal with the trust property and be paid from it.

The court made orders largely in the form sought by the Liquidator, allowing the Liquidator to proceed with the distribution of the trust's assets and be paid from those assets. The orders also provided for remote appearances due to the COVID-19 pandemic and restricted public access to the hearing. The Liquidator was further relieved from any liability for claims regarding the power to deal with trust property.