Richstar Enterprises Pty Ltd (ACN 099 071 968) v Carey (No 4)

Richstar Enterprises Pty Ltd (ACN 099 071 968) sought the appointment of receivers and managers to the property of the ninth defendant, Keypoint. The matter was heard in the Federal Court of Australia. The primary legal issues revolved around the appropriate scope of the receivers' powers, particularly whether the receivers could exercise control over Keypoint's property without the need to obtain prior leave from the Court or the consent of the defendant for each individual instance of sale, letting, or encumbering of the property. Additionally, the court had to consider the extent to which the receivers could require banks to cancel electronic banking facilities and the conditions under which these facilities could be reinstated.

The court ruled that the receivers should be appointed jointly and severally to all property of Keypoint, including bank accounts, held in various capacities. The receivers were granted extensive powers to identify, preserve, and secure the property for the benefit of potential creditors, including the power to enter into possession and control of the property. However, the court clarified that the receivers could not sell, let, or encumber the property without obtaining prior leave from the Court or the defendant's consent. The court also ordered that electronic banking facilities would be cancelled unless reinstated at the discretion of the bank upon written request from the receivers. The court further provided that the receivers could make inquiries into Keypoint's affairs and inspect its books and records, while banks were required to provide information that might assist in clarifying the Keypoint accounts. The receivers were also granted the power to approve certain transactions and changes to security arrangements, subject to their satisfaction as to Keypoint's solvency.

ORDERS:
A. Keypoint Enterprises Pty Ltd is ordered to deliver a detailed affidavit of its assets to the plaintiff and the receivers.
B. Keypoint Enterprises Pty Ltd is ordered to pay the plaintiff's costs of and incidental to this interlocutory process.