ARMINGTON & ARMINGTON (No.2)

This matter concerned an application by the wife to join several companies, including two in liquidation, as respondents to family law proceedings concerning property settlement. The dispute involved the valuation of the husband's business interests, and the wife sought an audit of these interests. The court was required to determine the appropriate legal basis for joining the companies in liquidation and whether an audit of the husband's financial interests should be ordered.

The court was required to determine the correct provision of the *Corporations Act 2001* (Cth) under which leave should be granted to join companies in liquidation, specifically whether it was s. 500(2) or s. 471B. Additionally, the court had to consider the necessity and terms of joining these companies as parties and whether to order an audit of the husband's financial interests, including the allocation of costs for such an audit.

The court accepted submissions that s. 500(2) of the *Corporations Act 2001* (Cth) was the appropriate provision for granting leave to join the companies in liquidation, as they had entered into a creditors' voluntary liquidation. The court found that the participation of these companies was necessary for the complete and final determination of the proceedings. Consequently, leave was granted to join two companies as the Fifth and Sixth Respondents, with conditions excusing them from active participation unless they chose to do so, and requiring them to be kept informed of the proceedings. A third company was joined as the Seventh Respondent. The court also ordered that the husband and wife appoint an auditor to conduct an audit of the entities to be valued, and that the costs of this audit be shared equally between them. The proceedings were subsequently transferred to the Melbourne Registry of the Family Court of Australia.