We discuss the Federal Court of Australias judgment and distil insights to assist trustees in bankruptcy navigate difficult estates and deal with recalcitrant bankrupts.
The Federal Court of Australia has dismissed an application by Salim Mehajer, the high profile former Deputy Mayor of Auburn City Council, NSW, to replace his trustee in bankruptcy. The Courts judgment furthers the authority that courts are reluctant to replace trustees absent clear evidence of maladministration.
- Courts tend not to interfere with a trustees discretion to exercise reasonable commercial decisions, let alone order their replacement. This holds as long as the trustees decisions align with the trustees duties provided at s 19 of the Bankrup…
Read the full article at: https://www.maddocks.com.au/insights/applications-to-replace-trustees-in-bankruptcy