BANKRUPTCY AND INSOLVENCY - application for orders to appoint receiver and manager - application granted
Quick Take
1A trustee company in liquidation that has been removed as trustee under the trust deed retains its right of exoneration and equitable lien over trust assets for liabilities incurred as trustee, but requires a court order before it may sell or deal with those assets; appointment of the liquidator as receiver and manager is the established mechanism to exercise that right.
2Where the company carried on no business other than as trustee of the relevant trust, the court can be satisfied that the appointment will not deprive non-trust creditors of their rights, justifying the receivership orders.
3A nunc pro tunc appointment as receiver may be made to regularise prior disclaimers of trust property under s 568(1) of the Corporations Act, by analogy with the established practice of retrospective appointments to regularise prior sales of trust assets.
Case Details
Citation[2026] FCA 1087
CourtFCA
JurisdictionCommonwealth
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