Body Corporate 81012 v Memelink

Body Corporate 81012, Body Corporate 68792, and Body Corporate 378945 brought proceedings against Harry Memelink and Cisca Johnette Forster as trustees of The Link Trust (No 1). The plaintiffs sought to recover unpaid levies on Trust properties and related debts. In a separate proceeding, the Official Assignee sought to be indemnified out of Trust property for debts incurred by Mr Memelink in his capacity as trustee. Lynx Trustees Limited (in liquidation) also brought a claim against the current trustees to be indemnified out of Trust property for debts arising in respect of certain claims against Lynx as a trustee of the Trust, and their reasonable remuneration. The Official Assignee, the liquidators, and the bodies corporate did not oppose the receivers’ application to vary the terms of their appointment. However, Mr Memelink opposed the application, claiming that the receivers were acting in a serious conflict of interest, had not followed through on their undertakings to the trustees, and should be removed. The court found that the receivers’ application was logical and appropriate in the circumstances. The court granted the orders sought by the receivers, including releasing them from personal liability for contracts for sale and lease entered into for the disposition of property of the Trust, and staying all proceedings by and against the Trust, except for applications by the liquidators and the Official Assignee to fix their renumeration. The court also directed the receivers to prepare a draft order for review by the court and approval for sealing.