Re Graziers' Investment Company Limited (in Liquidation) and GIC Holdings Pty Ltd

The liquidators of Graziers' Investment Company Limited (in liquidation) and GIC Holdings Pty Ltd applied for approval of their remuneration under s 60-10 of the Insolvency Practice Schedule (Schedule 2 to the Corporations Act 2001 (Cth)). The liquidators sought to recover remuneration for services rendered in the voluntary winding up of the Companies. The Supreme Court of Queensland (Corporations) was tasked with considering the adequacy of the remuneration claimed, the material relied upon, and the treatment of disbursements and legal costs. The Court also had to consider whether certain notice requirements under the Supreme Court (Corporations) Rules 2013 could be dispensed with due to the circumstances of the liquidations.

The Court examined the factors outlined in s 60-12 of the Practice Schedule, including the complexity, urgency, and value of the work performed, the experience and expertise of the liquidators, and the reasonableness of the remuneration in the context of similar cases. The Court determined that part of the remuneration initially claimed had already been subject to earlier approval by the members under s 60-10(2)(a) of the Practice Schedule. As such, the remuneration was approved in a reduced amount. The Court also considered the relevance of s 90-15 of the Practice Schedule in determining the treatment of disbursements and legal costs associated with the application for remuneration.

The Court found that the liquidators' claim for retrospective remuneration for Graziers was $34,166 (plus GST) and for GIC was $15,028.50 (plus GST). For prospective remuneration, the Court approved $37,153 (plus GST) for Graziers and $4,629.75 (plus GST) for GIC. These sums were in addition to amounts already approved by members of the Companies and paid to the liquidators. The Court also dispensed with certain notice requirements under r 9.2(2) of the Corporations Rules, directing that the application be determined "on the papers" due to the circumstances of the liquidations rendering the notice requirements incapable of compliance.

The Court made orders approving the liquidators’ retrospective and prospective remuneration claims for Graziers and GIC, as well as ancillary orders dispensing with certain notice requirements under the Corporations Rules and confirming the process for conducting the remuneration assessment “on the papers”.