In the matter of Sails Corp Pty Ltd [2021] NSWSC 1241

In the matter of Sails Corp Pty Ltd [2021] NSWSC 1241

Termination of winding up is appropriate as the applicant established, on the evidence, that the company will be and remain solvent following completion of specified steps, including payment of certain funds into controlled accounts to secure creditors' interests, the return of funds withdrawn by the director, settlement of outstanding liquidator and creditor costs, and with no insurmountable public interest or commercial morality impediment established by the director's temporary removal of company funds.

Jurisdiction
Australia
Judgment Date
23 September 2021
Procedural Posture
Application Under S 482 of the Corporations Act 2001 (cth) to Terminate Winding Up / Hearing and Orders on Application to Terminate Winding Up
Outcome
Orders made terminating the winding up, subject to completion of specified steps.
Legal Topics
['winding Up Termination' 'solvency of Company' 'commercial Morality in Company Dealings']
['corporate Law' 'equity'] ['winding Up Termination' 'solvency of Company' 'commercial Morality in Company Dealings']

Case Brief

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Procedural Posture

Application Under S 482 of the Corporations Act 2001 (cth) to Terminate Winding Up / Hearing and Orders on Application to Terminate Winding Up

Legal Issues

  1. 1 ['Whether winding up of Sails Corp Pty Ltd should be terminated under s 482 of the Corporations Act 2001 (Cth)' 'Whether company is and will be solvent' "Whether director's conduct merits refusal of relief" 'Appropriate conditions for termination regarding disputed Local Court judgments']

Ratio Decidendi

Termination of winding up is appropriate as the applicant established, on the evidence, that the company will be and remain solvent following completion of specified steps, including payment of certain funds into controlled accounts to secure creditors' interests, the return of funds withdrawn by the director, settlement of outstanding liquidator and creditor costs, and with no insurmountable public interest or commercial morality impediment established by the director's temporary removal of company funds.

Court Disposition

Orders made terminating the winding up, subject to completion of specified steps.

Orders

  • ['Winding up of Sails Corp Pty Ltd terminated subject to steps including payment of liquidator’s remuneration, payment to Mr Christian of undisputed amounts, payment of funds into a controlled moneys account for disputed Local Court judgments, securing costs pending assessment, and payment of stamp duty before...