Re Sallway, Mossgreen Pty Ltd (in liq) (remuneration of liquidators)

The case involves an application for remuneration and costs by the First Plaintiffs, Andrew Thomas Sallway and Mossgreen Pty Ltd (in liquidation), against Mossgreen Pty Ltd (the Second Plaintiff). The dispute concerns the remuneration of the First Plaintiffs for their services as administrators and then liquidators of the Second Plaintiff. The matter was heard in the Federal Court of Australia. The primary legal issues that the court had to decide were whether the First Plaintiffs were entitled to the remuneration they sought for their work as administrators and liquidators and whether their costs and expenses should be paid from the assets of the Second Plaintiff. The court also had to consider objections raised by two creditors of the Second Plaintiff.

The court examined the relevant principles governing the remuneration of liquidators under the Insolvency Practice Schedule (Corporations) and the Corporations Act 2001. It noted that the onus was on the liquidator to establish that the remuneration claimed was reasonable. The court applied these principles to the evidence presented by the First Plaintiffs, considering factors such as the proportionality of the remuneration to the value of services provided and the benefit derived from resolving the company's position. The court concluded that the First Plaintiffs had reasonably sought directions from the Court for the legal issues they encountered during the administration and liquidation process. It found that the costs incurred were necessary and that the remuneration sought was reasonable given the work performed.

The court granted the First Plaintiffs' application for remuneration and ordered that their costs and expenses be paid from the assets of the Second Plaintiff. The remuneration was fixed at $431,075.50 plus GST for the period as administrators and $185,056 plus GST for the period as liquidators. The court also allowed the First Plaintiffs to claim a further reasonable remuneration up to $30,000 plus GST from 27 May 2019 onwards. The court made the orders as sought in prayers 17, 20, 21 and 22 of the further amended originating process filed on 30 August 2019.