Mitchell & Anor and Scott & Anor

In the matter of *Mitchell & Anor and Scott & Anor*, Cleary J of the Family Court of Australia considered applications by the parties concerning the role and powers of receivers and managers appointed to certain entities. The dispute involved the wife's application for a further stay of proceedings, which was opposed by the husband.

The court was required to determine whether to vary existing orders to grant the receivers additional powers, to clarify their entitlement to remuneration and expenses, and to provide directions regarding the realisation of assets and the operation of businesses under their management. Additionally, the court had to consider the wife's application for a 28-day stay to investigate the financial position of an entity, and whether to dismiss all outstanding applications.

Cleary J reasoned that the receivers required expanded powers to effectively manage the entities, particularly in light of disputes between the parties. The court varied the existing orders to empower the trustees, in addition to their statutory powers, to undertake specific actions. The receivers were granted entitlement to draw remuneration, expenses, and indemnity from the assets under their control, though the ultimate allocation of these costs between the parties remained to be resolved. The court directed the receivers to proceed with the realisation of assets and the carrying on of businesses, and to retain qualified persons to prepare financial statements and tax returns, noting that the receivers had the ultimate decision-making authority if the parties could not agree. The wife's application for a stay was dismissed, as the necessary information was obtainable from the receivers and the assets were to be preserved.

Consequently, the court varied the May orders to grant the receivers additional powers, confirmed their entitlement to remuneration and expenses, and provided directions for the realisation of assets and business operations. All other outstanding applications were dismissed.