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ARTICLE · 04 MAY 2024

When can liquidators engage professional advisors without court approval?

Corrs Chambers Westgarth
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This case is a caution to liquidators engaging solicitors or other professional advisors in the course of their duties.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Michael Kimmins
Michael Kimmins
Daniel Byrne
Daniel Byrne
Emily Bartels
Emily Bartels
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The Supreme Court of Western Australia has recently delivered judgment in the case of Kitay v Frigger [No 2] [2024] WASC 113. The Court held that some, but not all, long-term costs agreements and retainers entered into by a liquidator required court approval.

Key Takeaways

  • Depending on the circumstances, a liquidator may require court approval to enter into a long-term costs agreement or retainer.
  • Court approval will not be required for long-term agreements the liquidator enters into that concern the provision of advice regarding the winding up or performance of the liquidator's duties.
  • Court approval will be required if the liquidator enters into a long-term agreement as an agent or representative of the company, if the company is a party to the agreement, or if the company takes the benefit of the services to be provided.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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