Re LM Investment Management Ltd (in liq)

The case of Re LM Investment Management Ltd (in liq) dealt with the application for directions by the liquidator of a managed investment scheme. The liquidator, appointed by the Court's orders of 21 August 2013, was tasked with winding up the scheme and managing its assets. The liquidator brought proceedings against auditors on behalf of the scheme's responsible entity on 2 March 2015. In the course of these proceedings, the liquidator sought directions from the Court regarding the settlement of these proceedings, specifically in relation to a proposed settlement dated 31 May 2022. The Court was also asked to decide whether the solicitor for the liquidator of the fund should be granted leave to appear and provide judicial advice during the hearing of the application.

The primary legal issue before the Court was whether the solicitor for the liquidator should be granted leave to appear and provide judicial advice during the hearing of the application for directions. The liquidator opposed the application for leave, arguing against the solicitor's involvement. The Court had to balance the liquidator's right to seek directions for settling proceedings against the procedural fairness and the established practices in such Court proceedings.

In determining the application, the Court considered the inherent jurisdiction to grant directions and the necessity for procedural fairness in Court proceedings. The Court ultimately concluded that the liquidator's solicitor should not be granted leave to appear and provide judicial advice. The Court found that the liquidator had already appointed legal representatives to handle the proceedings and that allowing additional legal representation could lead to unnecessary complications and a breach of procedural fairness. Consequently, the application for leave to appear was refused.