The Court found that Gemwood Projects was not insolvent at the relevant times because E&C, controlled by the same sole director (Emilios), was ready and willing to fund all of the Company's liabilities at all times, and the informal loan facility constituted a long-term arrangement rather than a short-term demand liability. The Court held that the liquidator should be removed under s 90-15 of the IPS and disallowed from recovering remuneration and expenses incurred in the proceeding, on the basis that the liquidator made allegations he knew to be incorrect and continued to prosecute the proceeding after changing his opinion on the Company's solvency, assessed against the Briginshaw standard. The claims for insolvent trading, unfair preferences, and uncommercial transactions were dismissed for want of the threshold insolvency finding.
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