Scott and Scott

In the matter of *Scott and Scott*, Cleary J of the Supreme Court of Victoria considered an application concerning the management and sale of assets held by E Pty Ltd, as trustee of the F Trust and the Scott Family Trust, and G Pty Ltd. The dispute involved the parties' rights and obligations in relation to these entities and their associated properties and businesses.

The court was required to determine the appropriate orders for the appointment of a receiver and manager, and to grant specific powers to that appointee. These powers included the authority to sell a property and its improvements, collect and dispose of company and trust assets, demand and call up book debts, initiate bankruptcy and winding-up proceedings, and pay specified debts. The court also had to consider the entitlement of the parties to purchase a particular asset and the discharge of previous court orders.

Cleary J reasoned that the appointment of a receiver and manager, with broad powers under section 420(2) of the *Corporations Act 2001* (Cth), was necessary to facilitate the orderly sale of assets and the resolution of outstanding debts. The court applied principles relating to the powers of receivers and managers to manage and realise the assets of companies and trusts, including the ability to sell property, collect debts, and take legal action. The court also addressed the allocation of costs for a previously appointed manager and determined that the parties would share these equally.

The court ordered the appointment of Mr B and Mr C as Receiver and Manager, jointly and severally, of E Pty Ltd and G Pty Ltd. The Receiver was empowered to sell the property at H Street and the K Centre, collect and dispose of business assets, demand book debts, initiate insolvency proceedings, and pay specified debts. The court further ordered that either the applicant or the respondent could purchase the K Centre, discharged previous orders from July 2016, and directed the parties to share the costs of the former manager.