Walley, in the matter of Royal National Capital Alliance Ltd (Administrators Appointed) (No 2) [2026] FCA 1383 — Corporations & Directions Granted — Barrister AI
Walley, in the matter of Royal National Capital Alliance Ltd (Administrators Appointed) (No 2)
application by liquidators for directions under s 90-15(1) of Insolvency Practice Schedule
where company acted solely as trustee for investment scheme
whether liquidators justified in not conducting public examinations, discontinuing recovery proceedings and distributing remaining proceeds
Quick Take
1Where a company in liquidation acted solely as trustee, liquidators are entitled to recover their general costs, expenses and remuneration — including for general liquidation work — from trust assets, as the winding up of the company is part and parcel of the administration and winding up of the trust.
2A trust deed clause requiring expenses to be 'appropriately allocated to the specific Mortgage Investment which caused the expense to be incurred' is properly characterised as directed to internal accounting between beneficiaries for valuation purposes, and does not limit the trustee's right of exoneration or indemnity from the general trust property under separate indemnity provisions.
3Prior court orders limiting recovery of costs to proceeds of specific trust investments do not, without express provision, preclude a subsequent application for recovery of general costs that cannot be attributed to any particular investment, particularly where the orders contain a reservation for further court orders.
