McDermott and McDermott and Ors

This matter concerned an application by a Receiver and Manager, previously appointed by the Court to the income and property of B Pty Ltd, seeking directions and further orders. The Receiver sought to be appointed as the receiver of a related corporate entity and a partnership conducted by the husband and wife who were the parties in the substantive proceedings. The application was made ex parte, with leave granted by Foster J.

The primary legal issues before the Court were whether it was appropriate to appoint the Receiver as the receiver and manager of the related corporate entity and the partnership, given the inextricably intermingled financial circumstances of these entities and the partnership. The Court was also required to consider the exercise of accrued jurisdiction to make such an appointment pursuant to section 67 of the *Supreme Court Act 1970* (NSW) in relation to the partnership.

Foster J reasoned that it was appropriate to appoint the Receiver to both the corporate entity and the partnership due to the interconnectedness of their financial affairs. The Court ordered that leave be granted to the Receiver to apply to wind up the Company and appoint himself as liquidator. Mr M was appointed as Receiver and Manager of the income and property of B Pty Ltd, with powers to conduct and manage the business pursuant to section 420 of the *Corporations Act 2001*. The Receiver's remuneration was to be paid firstly by B Pty Ltd, and in default, by the Husband and Wife jointly. The Husband and Wife were ordered to cooperate with the Receiver and provide requested financial documents within 24 hours. Similar orders were made for the appointment of Mr M as Receiver and Manager of "B Pty Ltd" (referring to the partnership). The Court also made orders nunc pro tunc concerning the Receiver's indemnity and lien over the Company's property, and varied previous orders regarding the *Corporations Act* provisions and remuneration. The application was adjourned, and service of the orders on the parties was directed.