Leave to continue against company in liquidation — Protective terms
Quick Take
1Leave to continue proceedings against a company in liquidation under s 500(2) of the Corporations Act 2001 (Cth) requires the applicant to establish a solid foundation giving rise to a serious question to be tried, having regard to whether relief can be obtained through the proof of debt process, the public interest, the stage and complexity of the proceeding, and the likely effect on creditors.
2Where the claim against a company in liquidation is necessary to maintain accessorial liability against a natural person who is the sole director and shareholder, that is a relevant factor favouring the grant of leave to continue.
3Leave to continue against a company in liquidation may be granted on protective terms restraining enforcement of any monetary judgment without further leave of the Court, thereby safeguarding the interests of the liquidator and creditors.
