Event and Time
Event Description
The case revolves around the approval of the liquidators’ remuneration in the ongoing liquidations of Octaviar Ltd and Octaviar Administration Pty Ltd. The liquidators, William Fletcher and Katherine Barnet, sought court approval under section 473 of the Corporations Act for their remuneration, which had not been approved since August 2018, due to ongoing disputes with the committees of inspection representing various creditors.
Application and Claims
- The liquidators applied for remuneration of:
1. Octaviar Ltd: $358,731.85 plus GST for the period from 1 July 2018 to 28 February 2019. 2. Octaviar Administration: $420,822.65 plus GST for the same period.
The application was supported by affidavits detailing the work performed and the complexities surrounding the liquidations.
Judicial Decisions
- Court approved the liquidators’ remuneration as requested, determining it reasonable based on the work conducted and the complexities involved in the liquidations.
Dispute Points and Legal Basis
Dispute Points
- Liquidators' Claim: The liquidators argued that their remuneration was justified given:
- The complexity and unique nature of the liquidations. - Previous approvals were obtained for the remuneration. - Efforts made to engage with the committees have been met with resistance.
- Committees of Inspection’s Objections: The objectors:
- Argued that the remuneration was excessive and pointed to high overall costs in comparison to dividends paid to creditors. - Did not provide substantive evidence to support claims or specifics on the remuneration sought. - Criticized the liquidators for the lack of improved transparency and communication regarding costs.