In the matter of Anke Smart City (HK) Ltd (in liq)

The parties involved in this case were Anke Smart City (HK) Ltd, a company in liquidation, and its sole shareholder, a foreign company registered in Australia without an Australian bank account. The nature of the dispute was whether special leave should be granted to distribute a surplus in the liquidation process. This case was heard in the Federal Court of Australia.

The primary legal issue before the court was whether it should grant special leave to allow the liquidator to distribute the surplus to the foreign shareholder. The court had to consider whether the foreign shareholder had sufficient ties to Australia to warrant the distribution of the surplus within the country, given that the shareholder had no Australian bank account. Additionally, the court needed to determine whether the lack of an Australian bank account would hinder the enforcement of any potential claims against the shareholder.

In examining these issues, the court noted that the foreign shareholder, although not having an Australian bank account, was registered in Australia and had sufficient connections to the country. The court reasoned that the lack of an Australian bank account did not necessarily preclude the distribution of the surplus within Australia, as other means of distribution could be arranged. The court ultimately decided that the special leave should be granted, allowing the liquidator to distribute the surplus to the foreign shareholder. This decision was based on the shareholder's registration in Australia and the existence of other means to facilitate the distribution.

The final orders of the court were to grant the liquidator special leave to distribute the surplus in the liquidation of Anke Smart City (HK) Ltd to its sole shareholder, the foreign company registered in Australia. The court emphasised that this decision was based on the specific circumstances of the case and that each case would need to be assessed on its own merits.