Tag Archives: Bicheno

Taking stock of stocktakes: insolvency practitioners’ entitlement to incentive fees

Bicheno Investments Pty Ltd v David John Winterbottom [2017] NSWSC 536 has confirmed that the completion of a stocktake does not necessarily require a full physical stocktake. Rather insolvency practitioners may satisfactorily complete a stocktake by reviewing a business’ records, provided they are satisfied that those records are accurate and complete. On this basis, Justice McDougall of the Supreme Court of New South Wales confirmed that the Receivers were entitled to retain a $2 million incentive fee. The decision also serves as a reminder of the impact the definition of a ‘stock take’ has in retention of title matters.

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