El Masri and Robinson, In the matter of an application for leave to issue a proceeding

This matter concerned an application for leave to issue a proceeding brought by El Masri and Robinson (the applicants) against the respondent. The applicants sought leave to commence proceedings in the Federal Court of Australia, alleging breaches of directors' duties under the *Corporations Act 2001* (Cth). The application was heard by Gageler J of the High Court of Australia.

The central legal issue before the Court was whether the applicants had established a sufficient basis to be granted leave to issue the proceeding. This involved determining whether the applicants had demonstrated a *prima facie* case that the respondent had contravened the provisions of the *Corporations Act 2001* (Cth) concerning directors' duties, and whether it was in the interests of justice to grant such leave.

Gageler J considered the evidence presented by the applicants and the relevant legal principles governing applications for leave to issue proceedings. His Honour applied the test for granting leave, which requires the applicant to show a *prima facie* case and that it is in the interests of justice to grant leave. The Court's reasoning focused on the strength of the applicants' allegations and the potential prejudice to the respondent if leave were granted without a sufficiently robust showing of a *prima facie* case.

The application for leave to issue a proceeding was dismissed.