In the matter of GPJ Investments Pty Limited and in the matter of Angelides Investments Pty Limited [2016] NSWSC 1173, the liquidators of GPJ Investments Pty Limited (GPJ) and Angelides Investments Pty Limited (AI) made an application for the approval of their remuneration and for special leave to distribute the surplus of funds in each winding-up.

In 2006, the Court had found that two properties and 1000 shares in GPJ were being held on trust for the directors and beneficiaries of AI. Further, the Court found that the properties and shares should be transferred to the three Angelides siblings, each of whom were equal shareholders in AI.

In 2014, one of the siblings, Jo-Anne Angelides (Jo-Anne), sought orders from the Court to implement those 2006 orders, which were ultimately made by Black J in conjunction with an order that GJP and AI be wound up on just and equitable grounds.

Since their appointment, the liquidators procured the transfer of one of the properties and the shares in GPJ to AI and went on to sell the two properties, one for $950,000 and the other for $3,400,000.

After realisation of assets and payments of liabilities, the liquidators held $901,093.02 in respect of GPJ which represented net realisations after payment of liabilities. Further, the liquidators held $3,751,860.41 in respect of AI which represented net realisations of assets in that liquidation.

The liquidators application for remuneration in the case of GPJ was equal to 5% of net realisations and in the case of AI, 2% of net realisations.

In this case, Brereton J was satisfied that the remuneration was reasonable and should be approved.

This case highlights the importance of proportionality in the context of liquidators applying for the approval of their remuneration.  Had the same work been undertaken by the liquidators with the result that a lower amount was realised for the two properties, it is possible that their remuneration would not have been approved at the same level.

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