Awada v Linknarf [2002] NSWSC 873

Awada v Linknarf [2002] NSWSC 873

Section 500(2) applies only in cases of creditors' voluntary winding up; it does not apply to members' voluntary winding up, therefore the plaintiff does not require leave to proceed with District Court proceedings against the company.

Parties
Plaintiff: Khadijeh Awada; Defendant: Linknarf Limited (In Liquidation)
Jurisdiction
Australia
Judgment Date
26 September 2002
Procedural Posture
Application for Declaratory Relief / Judgment
Outcome
Declaration granted
Legal Topics
Winding Up, Members' Voluntary Winding Up, Leave Under S.500(2), Continuation of Legal Proceedings
Corporations Law Equity Winding Up Members' Voluntary Winding Up Leave Under S.500(2) Continuation of Legal Proceedings

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Parties

Khadijeh Awada

Plaintiff

Linknarf Limited (In Liquidation)

Defendant

Procedural Posture

Application for Declaratory Relief / Judgment

Legal Issues

  1. 1 Does s.500(2) of the Corporations Act 2001 (Cth) apply to members' voluntary winding up?
  2. 2 Is leave under s.500(2) required for the continuation of legal proceedings against a company in members' voluntary winding up?

Ratio Decidendi

Section 500(2) applies only in cases of creditors' voluntary winding up; it does not apply to members' voluntary winding up, therefore the plaintiff does not require leave to proceed with District Court proceedings against the company.

Court Disposition

Declaration granted

Orders

  • Declaration that the plaintiff does not require leave of a court under the Corporations Act 2001 (Cth) to proceed with proceedings 8890 of 2001 in the District Court of New South Wales
  • Plaintiff's costs of these proceedings to be paid by the defendant