Re Idylic Solutions Pty Ltd as trustee for Super Save Superannuation Fund

The liquidators of several unregistered managed investment schemes sought approval from the Court under section 601EE(2) of the Corporations Act 2001 (Cth) for their existing and anticipated future remuneration in respect of the winding up of the schemes. They requested that their remuneration be calculated on a time-based approach, and that they be permitted to distribute the assets of the schemes in a manner that prioritised their claims. The dispute hinged on whether the Court should approve the liquidators' remuneration on a time-based approach, approve prospective remuneration, give the liquidators' claims first priority, and allow the liquidators' costs to be paid out of the assets of the respective schemes.

The primary legal issues before the Court were whether the remuneration sought by the liquidators was reasonable and justifiable under the relevant statutory provisions. The Court considered whether the time-based approach was appropriate and whether the liquidators were entitled to priority over other creditors. Additionally, the Court had to determine if the liquidators' costs should be borne by the schemes or by the liquidators themselves.

The Court found that the time-based approach sought by the liquidators was not appropriate for determining their remuneration. The Court held that the liquidators were not entitled to priority over other creditors and that their costs should not be paid out of the assets of the schemes. Instead, the Court ordered that the liquidators' remuneration be calculated based on the actual hours worked and that their costs should be borne by the liquidators themselves. The Court also directed that the liquidators distribute the assets of the schemes in accordance with the priority of claims as determined by the Court.

The Court’s final orders were that the liquidators’ remuneration be calculated based on the actual hours worked, that the liquidators’ costs be borne by the liquidators themselves, and that the liquidators distribute the assets of the schemes in accordance with the priority of claims determined by the Court.