What to do with an Insolvent Trustee Company?
Alicia Hill
Principal, Nationally Accredited Mediator, Graded Arbitrator and Conciliator
In the recent decision of Cremin, in the matter of Brimson Pty Ltd (in Liq) [2019] FCA 1023, the Federal Court provides useful guidance of what a liquidator should do when faced with an insolvent corporate trustee with a right of indemnity over trust assets.
In situations where the corporate trustee ceases to be the trustee upon becoming insolvent, Brimson highlights the need to approach the Court before the liquidator is able to realise the assets of the trust to meet the company’s liabilities.
The decision is one of the first since the handing down of the High Court’s findings in Carter Holt Harvey (Amerind) concerning the nature of the right of exoneration and the limit of what it can be used to indemnify. Click here for the full article.
Senior Lecturer
5 年Yes, thanks for the note and for sharing Alicia!
Adjunct Professor (UQ, Law).BComm, BEcon, GDLP, LLB, LLM, SJD, FCA, FCPA, FCIS, FGIA, RITF
5 年Thanks for the note Alicia.
Adjunct Professor (UQ, Law).BComm, BEcon, GDLP, LLB, LLM, SJD, FCA, FCPA, FCIS, FGIA, RITF
5 年A very simple amendment to the Corps Act would obviate the need for all this messing around. Not to mention the costs saving which is a practically important consideration for many insolvent corporate trustees and their liquidators.