Re Matthew Forbes Pty Ltd (in liq)

Matthew Forbes Pty Ltd, a company in liquidation, was the subject of an application by its liquidators to the Federal Court of Australia. The liquidators sought orders under section 90-15 of Schedule 2 of the Insolvency Practice Schedule to the Corporations Act 2001, aiming to determine their entitlement to relief from liability under section 1318 of the Corporations Act, as well as section 67 of the Trustee Act 1958. Additionally, they sought to be paid their remuneration, costs, and expenses under section 556(1) of the Corporations Act.

The central legal issues revolved around whether the liquidators were entitled to the requested relief from liability, as well as whether they could be paid their remuneration, costs, and expenses. The court had to consider whether the liquidators could treat trust assets as company assets, following the decisions in Commonwealth v Byrnes and Jones v Matrix Partners.

The court found that the liquidators were entitled to relief from liability under section 1318 of the Corporations Act, as well as section 67 of the Trustee Act 1958. The court held that the liquidators could treat the trust assets as company assets and were therefore entitled to be paid their remuneration, costs, and expenses under section 556(1) of the Corporations Act. This decision was based on the principle that liquidators should be protected from personal liability when acting within the scope of their duties, and that trust assets should be treated as company assets when the company is in liquidation.

The court made orders granting the liquidators the requested relief from liability and directing that they be paid their remuneration, costs, and expenses.