CORPORATIONS ACT 2001

CHAPTER 5D - LICENSED TRUSTEE COMPANIES  

PART 5D.3 - REGULATION OF FEES CHARGED BY LICENSED TRUSTEE COMPANIES  

Division 5 - Miscellaneous  

SECTION 601TEA   POWER OF THE COURT WITH RESPECT TO EXCESSIVE FEES  

601TEA(1)   [ Court may review and reduce fees]  

If the Court is of the opinion that fees charged by a licensed trustee company in respect of any estate are excessive, the Court may review the fees and may, on the review, reduce the fees.

601TEA(2)   [ Application]  

Subsection (1) does not apply to fees:


(a) that are charged as permitted by section 601TBB ; or


(b) that relate to a charitable trust and that are charged as permitted by Subdivision A of Division 4 .

601TEA(3)   [ Factors the Court may consider]  

In considering whether fees are excessive, the Court may consider any or all of the following matters:


(a) the extent to which the work performed by the trustee company was reasonably necessary;


(b) the extent to which the work likely to be performed by the trustee company is likely to be reasonably necessary;


(c) the period during which the work was, or is likely to be, performed by the trustee company;


(d) the quality of the work performed, or likely to be performed, by the trustee company;


(e) the complexity (or otherwise) of the work performed, or likely to be performed, by the trustee company;


(f) the extent (if any) to which the trustee company was, or is likely to be, required to deal with extraordinary issues;


(g) the extent (if any) to which the trustee company was, or is likely to be, required to accept a higher level of risk or responsibility than is usually the case;


(h) the value and nature of any property dealt with, or likely to be dealt with, by the trustee company;


(i) if the fees are ascertained, in whole or in part, on a time basis - the time properly taken, or likely to be properly taken, by the trustee company in performing the work;


(j) any other relevant matters.

601TEA(4)   [ How matter comes before Court]  

The Court may exercise its powers under subsection (1) either on its own motion or on the application by or on behalf of a person with a proper interest in the estate.

601TEA(5)   [ Costs when fees reduced by more than 10%]  

If the fees are reduced by more than 10 % , the trustee company must, unless the Court in special circumstances otherwise orders, pay the costs of the review.

601TEA(6)   [ Court's discretion for costs]  

Subject to subsection (5), all questions of costs of the review are in the discretion of the Court.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.