The Court made declarations that the liquidator of a company that acted solely as trustee of a discretionary trust was justified in treating all company assets as trust property and distributing proceeds under Pts 5.5 and 5.6 of the Corporations Act. Powers were conferred under s 63 of the Trustee Act 1958 (Vic) rather than by appointing the liquidator as receiver, on the basis that the trust property would be exhausted, no new trustee was likely, and the company had ceased trading. The Court adopted the more liberal approach to s 1318(2) relief, granting excusal for past dealings with trust property notwithstanding the absence of any specific evidence of a threatened claim, noting the inherent uncertainty arising from a bare trustee's limited powers.
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