1Where a trust deed contains an ipso facto clause terminating the trustee's appointment upon liquidation, the former corporate trustee becomes a bare trustee with a right of indemnity and supporting lien over trust assets, and the court will appoint the liquidator as receiver and manager over the trust assets under s 37 of the Supreme Court Act 1986 (Vic) to enable realisation and distribution.
2Where a trust deed does not contain an ipso facto clause displacing the corporate trustee upon liquidation, the company remains trustee and the court may make declarations confirming the liquidator's entitlement to exercise trustee powers, pursuant to ss 90-15 and 90-20 of the Insolvency Practice Schedule (Corporations) and r 54.02 of the Supreme Court (General Civil Procedure) Rules 2025 (Vic).
3The liquidator's remuneration, costs and expenses incurred in preserving, realising and distributing trust assets are payable from trust property in accordance with the priorities in s 556(1) of the Corporations Act 2001 (Cth).
