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

KordaMentha Pty Ltd was ordered to wind up the LM Managed Performance Fund (the Trust) and was appointed as the trustee of the Trust. KordaMentha applied for an order pursuant to s 101 of the Trusts Act 1973 (Qld) authorising the payment of remuneration for services rendered as trustee. The court was required to determine whether KordaMentha was entitled to remuneration, and if so, in what amount.

The court considered the provisions of the Trusts Act and the Trust’s constitution. The court held that the onus was on KordaMentha to establish an entitlement to remuneration, and that there must be evidence before the court to establish a prima facie case for the determination of the amounts claimed. The court also held that the remuneration must be fair and reasonable, and that time-based costing is an acceptable basis for determining remuneration. The court found that the evidence provided by KordaMentha was sufficient to establish a prima facie case for the determination of the amounts claimed, and that the remuneration was fair and reasonable.

The court authorised KordaMentha to pay out of the assets of the LM Managed Performance Fund the amount of $586,697.10 inclusive of GST as the applicant’s remuneration for its services as trustee for the period from 2 November 2020 to 28 November 2021. The court also ordered that KordaMentha’s costs of and incidental to the application be paid out of the assets of the LM Managed Performance Fund, on the indemnity basis.