In the matter of S & W Slade Pty Ltd (in liq) [2020] NSWSC 981

In the matter of S & W Slade Pty Ltd (in liq) [2020] NSWSC 981

Although the application was finely balanced because the Company would have limited surplus capital, the Plaintiffs had provided funds sufficient to pay creditors and liquidators' costs, all proven and admitted creditor claims had been paid, the liquidator did not object, the Company had some existing capital, termination was sought for a legitimate commercial reason, and the Company did not propose to continue trading. The Court was sufficiently satisfied of solvency to terminate the winding up, without needing to specify whether the power arose under s 482 of the Corporations Act 2001 (Cth) or s 90-15 of the Insolvency Practice Schedule (Corporations).

Jurisdiction
Australia
Judgment Date
22 June 2020
Procedural Posture
Corporations External Administration Application to Terminate Winding Up / Amended Originating Process; Ex Tempore Judgment
Outcome
Winding up terminated.
Legal Topics
['termination of Winding Up' "creditors' Voluntary Winding Up" 'external Administration' "liquidators' Costs" 'solvency']
['corporations Law' 'insolvency Law'] ['termination of Winding Up' "creditors' Voluntary Winding Up" 'external Administration' "liquidators' Costs" 'solvency']

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Procedural Posture

Corporations External Administration Application to Terminate Winding Up / Amended Originating Process; Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the winding up of S & W Slade Pty Ltd (in liq) should be terminated.' "Whether, following the commencement of the Insolvency Law Reform Act 2016 (Cth), an order terminating a creditor's voluntary winding up should be made under s 482 of the Corporations Act 2001 (Cth) or s 90-15 of the Insolvency Practice Schedule (Corporations)."]

Ratio Decidendi

Although the application was finely balanced because the Company would have limited surplus capital, the Plaintiffs had provided funds sufficient to pay creditors and liquidators' costs, all proven and admitted creditor claims had been paid, the liquidator did not object, the Company had some existing capital, termination was sought for a legitimate commercial reason, and the Company did not propose to continue trading. The Court was sufficiently satisfied of solvency to terminate the winding up, without needing to specify whether the power arose under s 482 of the Corporations Act 2001 (Cth) or s 90-15 of the Insolvency Practice Schedule (Corporations).

Court Disposition

Winding up terminated.

Orders

  • ['The winding-up of S & W Slade Pty Ltd (In Liq) be terminated with immediate effect.' 'The Plaintiffs pay the costs of the proceedings.']