Re Pako Supermarkets Pty Ltd (in liq)

The case of Re Pako Supermarkets Pty Ltd (in liq) involved the liquidators of Pako Supermarkets Pty Ltd applying to the court for orders to facilitate the payment of their remuneration, costs, and expenses. The dispute arose as the company had entered liquidation, and the liquidators sought clarification on their entitlements under the Corporations Act 2001 (Cth) and the Trustee Act 1958 (Vic). The legal issues before the court were whether the liquidators were entitled to be paid their remuneration, costs, and expenses under section 556(1) of the Corporations Act and whether the liquidators could treat the assets of the company as trust assets and distribute them in accordance with the relevant sections of the Corporations Act.

The court considered the provisions of the Corporations Act and the Trustee Act to determine the liquidators' entitlements. It was established that the liquidators were entitled to be paid their remuneration, costs, and expenses under section 556(1) of the Corporations Act, as the company had entered liquidation, and the liquidators had a statutory right to be paid from the assets of the company. The court also found that the liquidators were entitled to treat the assets of the company as trust assets and distribute them in accordance with Parts 5.5 and 5.6 of the Corporations Act, as the corporate trustee ceased to be trustee upon liquidation, and the liquidators were the bare trustees. The court granted the liquidators the orders they sought, empowering them to deal with and dispose of the trust assets and distribute the proceeds to the secured and unsecured creditors of the company.

The final orders of the court were that the liquidators were entitled to be paid their remuneration, costs, and expenses under section 556(1) of the Corporations Act, and that the liquidators could treat the assets of the company as trust assets and distribute them in accordance with Parts 5.5 and 5.6 of the Corporations Act. The court also granted the liquidators the power to deal with and dispose of the trust assets and distribute the proceeds to the secured and unsecured creditors of the company.