Liquidating trustee wanted

Tags: appointing company trustee, asset protection, assets of trust, Company Liquidation, Corporate Trustee, corporate trustee liquidation, corporations act 2001, distributing company assets, express authority, Federal Court, insolvency, insolvent corporation, Kitay, Liquidation, liquidation of company, Liquidator, requisite power, South West Kitchens, South West Kitchens Pty Ltd, SW Kitchens, the decision of kitay, trading trust, trust assets, trust deed, trustee or a trading trust : Angelo Venardos is a Special Counsel at Ferguson Cannon Lawyers and a part of the Business and Corporate team.Since being admitted to practise law in 1991, Angelo has practised in the private, public and not-for-profit sectors and, in doing so, gained an exceptionally diverse range of experience and expertise.However, the decision of Kitay provides authority for the liquidator to exercise the power of sale pursuant to section 477(2)(c) of the (“the Act”).In other words, now, a liquidator does not have to obtain express authority from the court to sell trust assets in straight forward cases.If you are unsure as to whether or not your trust assets are safe, it is important to speak to an experienced lawyer as soon as possible.


In the recent Federal Court of Australia decision of Kitay, in the matter of South West Kitchens (WA) Pty Ltd [2014] FCA 670 (“the decision of Kitay”) the Federal Court held that a liquidator of a corporate trustee could sell the trust assets without first obtaining a court order.In the decision of Kitay the facts were: Prior to the decision of Kitay a liquidator of a corporate trustee had to apply to the court for an order authorising the sale of trust assets.


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