GIO General Ltd v Sabko Pty Ltd

The plaintiff, GIO General Ltd, sought the winding up of the defendant, Sabko Pty Ltd, on the grounds that the company was unable to pay its debts and had suffered a failure of substratum. The case was heard by the Federal Court of Australia. The central issue before the court was whether the plaintiff had standing to petition for the winding up of the company, specifically whether it was a creditor in respect of a debt incurred during the company's deregistration. The court had to determine whether there was sufficient evidence of insolvency and whether there was a failure of the company's substratum.

The court found that GIO General Ltd was indeed a creditor under s 601AH(5) of the Corporations Act, as it had a debt that was incurred during the period of the company's deregistration. The court considered the evidence of insolvency and concluded that there was indeed sufficient evidence to support this. The court also examined whether there was a failure of the company's substratum, which is a fundamental change in the company's operations or purpose. The court found that there was indeed a failure of the company's substratum, which justified the winding up of the company on the just and equitable ground.

The court granted the plaintiff's application for the winding up of the defendant company. The orders made by the court were that the company be wound up and that a liquidator be appointed to take control of the company's assets and affairs. The court found that the company was unable to pay its debts and that it was just and equitable for the company to be wound up. The court also found that the plaintiff had standing to petition for the winding up of the company and that there was sufficient evidence of insolvency and failure of substratum to support the application.