Re 4Lifeskills Inc. (Administrators Appointed); Ex Parte Brauer & Kirman Joint and Several Administrators of 4Lifeskills Inc. (Administrators Appointed) [2026] WASC 478 — External Administration & Insolvency Practitioners — Barrister AI
Re 4Lifeskills Inc. (Administrators Appointed); Ex Parte Brauer & Kirman Joint and Several Administrators of 4Lifeskills Inc. (Administrators Appointed)
› Termination of voluntary administration under s 447A(1) Corporations Act 2001 (Cth) on satisfaction of conditions
Corporations
› External administration
› Application of pt 5.3A to incorporated associations under Associations Incorporation Act 2015 (WA) s 120
Corporations
› External administration
› Solvency under s 95A: debts presently due and payable; accrued employee entitlements not presently payable
Corporations
› Insolvency practitioners
› Approval of administrators' remuneration under Insolvency Practice Schedule s 60-10: prima facie case of reasonableness
Quick Take
1Section 447A(1) of the Corporations Act 2001 (Cth) empowers the court to order that an administration end where the company is solvent or will become solvent on satisfaction of conditions. The power is broad but not unlimited, and any order must have a nexus with the objects of pt 5.3A. Part 5.3A and s 447A extend to associations incorporated under the Associations Incorporation Act 2015 (WA) via s 120 of that Act.
2In assessing prospective solvency under s 95A, the court considers whether debts presently due and payable can be discharged from committed funding. Accrued employee entitlements that are not presently due and payable need not be met for this purpose. On the facts, a binding term sheet and executed funding agreement sufficiently demonstrated the proponent's commitment.
3On a court remuneration determination under s 60-10(1)(c) of the Insolvency Practice Schedule, the administrator must establish a prima facie case that the remuneration is reasonable, without a line-by-line review. Following Intergen Energy Holdings (Australia) Pty Ltd [2017] FCA 445, the court may also fix remuneration for work to be done after the administration ends, here capped and supported by the proponent's agreement.
