Part 2F.1A of the Corporations Act applies to companies in liquidation, and the question is now settled. The court's inherent power to authorise proceedings in a company's name also survives the enactment of Part 2F.1A. Where leave is granted for derivative proceedings on behalf of an insolvent company, appropriate terms include an indemnity by the applicant for all costs and expenses and the application of s 240 to any compromise or settlement. The liquidator is not a party to derivative proceedings and will not incur personal costs liability.
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