At what cost: Federal Court affirms approval rules for solicitor costs agreement

Alicia Salvo, Cameron Cheetham and Nicholas Garbas of Corrs report that the Federal Court has reaffirmed that approval of a solicitor costs agreement under section 477(2B) is a check on a liquidator’s commercial judgement rather than an endorsement, confirming that clear and reasonable terms, creditor benefit and proper purpose must be shown.

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