Distribution of corporate trustee property and circulating security assets: Victorian Supreme Court decision

by Mark Wellard | Mar 27, 2017

In a 145 page judgment, Robson J of the Victorian Supreme Court in Re Amerind Pty Ltd (recrs and mgrs apptd) (in liq) [2017] VSC 127 has followed NSW authority which endorses a pari passu distribution of corporate trustee property instead of the priority waterfall in s 556 of the Corporations Act (‘the Act’).  In following that approach, Robson J logically also disapplied s 433 of the Act with the result that employees were not entitled to priority distribution of circulating security asset realisations in a receivership where the circulating security assets were trust property.  Members can read more here