Category: Insolvency Law

Curing defects in a members’ winding up

In a members’ voluntary winding up, the Court exercised its powers under s 1322 of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations) to cure issues arising from the passing of important members’ resolutions by power of attorney.

Bankrupting on a non-provable debt

In ASIC v King, the Federal Court recognised the Court’s jurisdiction to bankrupt a debtor on the petition of a creditor who is owed a debt that is not provable in bankruptcy (in this case, a pecuniary penalty order), finding that it is a matter of discretion whether to make a sequestration order.