QNI Resources Pty Ltd & Ors v Park & Ors

[2016] QSC 222

Supreme Court of Queensland

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Corporations
2. › Winding up
3. › Conduct and incidents of winding up
4. › Proceedings by or against the company
5. › Leave to proceed
6. › Whether serious question to be tried
7. › Whether applicants' pleaded case negated trustee's right of indemnity
8. › Corporations Act 2001 (Cth), s 500(2)
1. Equity
2. › Trusts and trustees
3. › Powers, duties, rights and liabilities of trustees
4. › Indemnity, lien and reimbursement
5. › Trustee's right of indemnity out of trust assets
6. › Whether trustee has beneficial interest in trust assets to extent of indemnity right
7. › Whether right of indemnity confers equitable charge or lien over trust assets
1. Equity
2. › Equitable remedies
3. › Equitable lien
4. › Whether equitable lien arises where assets not held on trust
5. › Lien of manager of property for costs of management
6. › Whether equity of the case demands recognition of lien
1. Equity
2. › Equitable remedies
3. › Accounts and inquiries
4. › Whether order for account appropriate
5. › Whether surplus likely after satisfaction of obligation
6. › Whether applicant must disclose capacity to repay deficiency

Quick Take

A party seeking leave to proceed against a company in liquidation to recover property held by the company as trustee or manager must negate the company's entitlement to a right of indemnity (and associated lien) over that property in respect of liabilities properly incurred. Bare assertion of conclusions of law without pleading material facts to support them will not establish a serious question to be tried. A beneficiary seeking equitable relief for return of trust property must be prepared to defray the trustee's legitimate expenses, and failure to address the trustee's indemnity rights is an insurmountable obstacle to equitable remedies.