Background
In December 2020, the Federal Court appointed Robert Kirman and Robert Brauer of McGrathNicol as joint and several receivers and managers of property connected with Chris Marco, AMS Holdings (WA) Pty Ltd and the relevant managed investment scheme.
The receivers applied for their remuneration for three later periods, from 1 June 2024 to 8 May 2026. They sought the same mechanism the Court had approved on eight earlier remuneration applications: a Registrar would fix their final entitlement, while they could receive 85% of the amounts claimed on an interim basis.
The Court’s Holding
Justice Feutrill ordered that a Registrar review and fix the receivers’ remuneration for the three periods. The Registrar may request further information, must give short written reasons, and the receivers or another party may apply to the Court within 14 days to review the Registrar’s determination.
The Court approved interim payments equal to 85% of the claimed amounts, subject to safeguards. If the final determination is lower, the receivers must refund the difference with interest at the applicable Westpac six-month business term-deposit rate; if it is higher, they may draw the additional amount only under further Registrar or Court orders. The Court also restricted access to confidential annexures concerning ongoing investigations and actual or potential proceedings, absent leave.
Key Takeaways
- The receivers may receive 85% of their claimed remuneration before final assessment.
- Final remuneration remains subject to a Registrar’s review and possible Court review.
- Overpayments must be repaid with interest, and sensitive receivership reports remain confidential unless the Court permits access.
Why It Matters
The decision continues the Court’s established approach in this receivership: permitting controlled interim remuneration where the claim is supported by detailed reports and unopposed, while preserving independent scrutiny of the final amount.
It also illustrates how repayment obligations, interest and reporting requirements can protect the property under receivership when interim fees are authorised before final determination.