Doolan, in the matter of MIH Company Pty Ltd (in liq) v MIH Company Pty Ltd (in liq)

In the Federal Court, Mr Doolan applied to terminate the winding up of MIH Company Pty Ltd. The winding up was commenced due to MIH Company's inability to pay its debts, specifically a significant tax liability owed to the Australian Taxation Office. Mr Doolan, a director of MIH Company, sought termination of the winding up under section 482(1) of the Corporations Act 2001 (Cth). The court was required to determine whether the winding up should be terminated, considering the current financial state of MIH Company and the implications for its creditors. The court found that all relevant parties either supported or did not oppose the termination, and that terminating the winding up would allow all creditors to be paid in full. The circumstances that led to the winding up no longer existed, as MIH Company was no longer insolvent and its debts were manageable.

The court examined whether the winding up should be terminated under section 482(1) of the Corporations Act 2001 (Cth), which allows for the termination if it is just and equitable to do so. The court considered the financial status of MIH Company, the views of all stakeholders, and the potential impact on creditors. Given that all creditors would be paid in full and MIH Company would not be insolvent if the winding up was terminated, the court concluded that it was just and equitable to terminate the winding up. The court also noted that MIH Company's accountants had committed to resolving any outstanding tax issues promptly after the winding up was terminated.

The Federal Court terminated the winding up of MIH Company Pty Ltd under section 482(1) of the Corporations Act 2001 (Cth). The court fixed the liquidators' fees and costs at $20,998.41 and ordered Mr Doolan to pay the petitioning creditor costs of $2,256. The court directed that the liquidators retain $20,998.41 from the available funds to cover the liquidators' fees and costs, and pay the remaining funds to the Australian Taxation Office. Mr Doolan was also ordered to pay any remaining tax liabilities owed by MIH Company within seven days of the liquidators complying with the direction. Additionally, MIH Company was required to lodge a copy of the court's order with the Australian Securities and Investments Commission within 14 days.