Re PPI Corporation Pty Ltd

In the case of Re PPI Corporation Pty Ltd, the former administrators, Stephen Longley and David McEvoy, sought an order for the determination of their remuneration under section 449E(1)(c) of the Corporations Act 2001 (Cth). The application was brought before the court following the conclusion of the external administration of PPI Corporation, which ended when creditors resolved to wind up the company on 13 August 2013. The plaintiffs sought remuneration for work done at the request of the liquidators, to assist in the transition from administration to winding up, as well as for work done in preparing the application for the determination of remuneration.

The legal issues before the court involved whether the former administrators were entitled to remuneration for services provided after the administration had concluded and whether they could claim for time spent in preparing the application for the determination of remuneration. The court had to determine the appropriateness of the remuneration sought, which was estimated to be up to $1 million plus GST, and whether the service provided was within the scope of work authorised by the creditors during the administration.

The court found that the former administrators were entitled to remuneration for their services provided during the transition to winding up, as this work was directly related to the administration of the company. The court also held that the administrators were entitled to remuneration for time spent in preparing the application for the determination of remuneration. The court considered the hourly rates set out in the schedule provided to the creditors as reasonable and appropriate. The court made an order under section 447A determining the remuneration for the work done by the administrators and their staff.

In summary, the court granted the former administrators' application for the determination of their remuneration, finding that they were entitled to be compensated for services rendered during the transition to winding up and for time spent in preparing the application. The order reflects the remuneration sought by the administrators, taking into account the reasonable hourly rates provided to the creditors.