Re Jick Holdings Pty Ltd (in liq)

The case before the court was a dispute over the validity of a creditors' resolution to appoint a deed administrator as liquidator of Jick Holdings Pty Ltd, a company in voluntary administration. The primary issue was whether the deed administrator, who was also an officer of the company, was disqualified from being appointed as liquidator due to their dual role. Additionally, the court had to determine the status of the deed fund and whether it was held for the benefit of all creditors or only those entitled to participate under the deed.

The court considered the statutory provisions governing voluntary administration and deeds of company arrangement. It found that the deed administrator was not disqualified by their role as an officer of the company, as the creditors had resolved to appoint them as liquidator. Furthermore, the court determined that following a winding-up, the deed administrator became a creditor of the company for their work done as deed administrator, due to the statutory right to remuneration. However, for the deed administrator to accept the appointment and act as liquidator, leave of the court was required. The court granted retrospective leave, allowing the deed administrator to proceed with the role of liquidator.

The court's decision clarified the process for appointing a deed administrator as liquidator and the implications of their dual role. It also resolved the issue of the deed fund, holding that it was intended for the benefit of all creditors of the company, not just those entitled to participate under the deed. This decision provides important guidance for future cases involving voluntary administration and deeds of company arrangement.