Re AAA Financial Intelligence Ltd (in liq) (No 2)

The parties involved in this matter are the liquidators of AAA Financial Intelligence Ltd, in liquidation, and the respondent. The liquidators sought directions from the court regarding the determination of their remuneration and whether they were entitled to be paid from assets held by the company on trust. The dispute also involved the justification of disbursements made by the liquidators and the appropriate method for fixing their remuneration. The matter was heard in the Supreme Court of New South Wales.

The primary legal issues before the court were whether the liquidators were entitled to remuneration from assets held by the company on trust, and if so, the extent of that entitlement. The court also had to consider the justification of the disbursements made by the liquidators, as well as the appropriate method for fixing their remuneration. Specifically, the court needed to determine whether the time-cost basis was an appropriate method for calculating the liquidators' remuneration.

The court found that the liquidators were entitled to remuneration from the trust assets, but this entitlement was subject to the same considerations as any other creditor. The court held that the time-cost basis was but one factor in determining the appropriate level of remuneration, and was neither the dominant factor nor the default position. The court also noted that the liquidators had made justified disbursements, which should be taken into account when calculating their remuneration. The court provided directions to the liquidators regarding the calculation of their remuneration and the consideration of justified disbursements.

The court made orders that the liquidators' remuneration should be determined based on a range of factors, including the time-cost basis, but also considering other relevant factors such as the complexity of the administration and the skill and experience of the liquidators. The court also ordered that the liquidators' justified disbursements should be taken into account when calculating their remuneration.