Australian Securities and Investments Commission v Lanepoint Enterprises Pty Ltd

The Australian Securities and Investments Commission (ASIC) applied to wind up Lanepoint Enterprises Pty Ltd (Lanepoint) on the grounds of insolvency. Lanepoint was presumed to be insolvent under section 459C(2)(c) of the *Corporations Act 2001* (Cth). The High Court of Australia considered an appeal from a decision of the Full Court of the Federal Court.

The legal issues before the High Court included whether the principle that a company will not be wound up if the debt is the subject of a bona fide dispute on substantial grounds, which applied under former companies legislation, remained applicable to the *Corporations Act 2001* in light of the presumption of insolvency. The court also considered whether Lanepoint had proven its solvency, whether the primary judge's discretion miscarried in refusing to dismiss or stay the proceedings, and whether other parties needed to be joined to the proceedings.

The High Court held that the discretion of the primary judge had not miscarried and that there was no impediment to proceeding with the determination of whether Lanepoint could rebut the presumption of insolvency, which it failed to do. The court noted that the principle regarding bona fide disputes on substantial grounds was not a bar to winding up proceedings where the presumption of insolvency had not been rebutted. The court also found that the grounds of appeal pursued by Lanepoint to the Full Court lacked merit, including the concession that a compromise of the debt had not been finalised.

The High Court allowed the appeal with costs, setting aside the orders of the Full Court of the Federal Court and ordering that Lanepoint's appeal to that court be dismissed with costs.