KordaMentha Pty Ltd v The Members of the LM Managed Performance Fund

The applicant, KordaMentha Pty Ltd, applied to the Supreme Court of Queensland for authorisation to pay itself remuneration for its services as the sole trustee of the LM Managed Performance Fund (the Trust) for the period from 2 September 2019 to 1 November 2020. The Trust, which had total receivables exceeding $450 million at the time the applicant was appointed as trustee, was wound up on 10 February 2014, and the applicant has been the sole trustee since that date. The applicant sought orders under section 101 of the Trusts Act 1973 (Qld) authorising the payment of remuneration and for its costs of and incidental to the application be paid out of the assets of the Trust on the indemnity basis.

The primary issue before the court was whether the applicant was entitled to remuneration under section 101 of the Trusts Act, and if so, in what amount. The applicant argued that it was entitled to remuneration, as it was engaged in a business or profession for which no benefit or remuneration was provided in the trust instrument. The court considered the appropriate principles and grounds for granting or refusing the payment of remuneration, taking into account the relevant statutory provisions and previous case law.

The court found that the applicant was entitled to remuneration for its services as trustee of the Trust, pursuant to section 101 of the Trusts Act. The court considered that the applicant had discharged its duties as trustee diligently and efficiently, and that the circumstances justified the payment of remuneration to the applicant. The court also took into account the applicant's costs of and incidental to the application, which were to be paid out of the assets of the Trust on the indemnity basis. The court authorised the payment of remuneration in the amount of $280,129.30 inclusive of GST.

The court made orders pursuant to section 101 of the Trusts Act authorising the payment of remuneration in the amount of $280,129.30 inclusive of GST as the applicant's remuneration for its services as trustee of the Trust for the period from 2 September 2019 to 1 November 2020, and for the applicant's costs of and incidental to the application be paid out of the assets of the Trust, on the indemnity basis.