Australian Stock Report Limited

In the matter of *Australian Stock Report Limited* [2023] FCA 1001, Justice Heath Wilson of the Federal Court of Australia considered an application by the applicant for an order that the respondent be wound up. The applicant sought this order on the basis that the respondent was unable to pay its debts.

The primary legal issue before the Court was whether the respondent was in fact unable to pay its debts as they fell due, thereby satisfying the criteria for a compulsory winding up under the *Corporations Act 2001* (Cth). This involved an assessment of the respondent's financial position and its capacity to meet its liabilities.

Justice Heath Wilson found that the evidence presented did not establish that the respondent was unable to pay its debts. The Court applied the principles governing winding up applications, which require a clear demonstration of insolvency. Having not been satisfied on this crucial point, the application for winding up was dismissed.