In the matter of FSM Development Pty Ltd (in liq)

The liquidators of FSM Development Pty Ltd filed an application for an order to examine a former director of the company. The application was made under section 464 of the Corporations Act 2001. The former director, Mr. Smith, sought to have the application dismissed, arguing that it was out of time. The liquidators also sought an extension of time to apply to set aside the examination summons in respect of one of the applicants, Ms. Jones. The court had to decide whether the application was out of time and whether the orders for examination should be set aside.

The court noted that the liquidators had applied for the examination more than six years after the company had gone into liquidation. The former director argued that the delay was unjustifiable and that the application should be dismissed. The court considered the relevant provisions of the Act and the circumstances of the case. The court held that the application was not out of time and that the delay was not so unreasonable as to justify dismissal. The court also considered the application for an extension of time to apply to set aside the examination summons in respect of one of the applicants. The court found that there were exceptional circumstances that justified the extension of time.

The court held that the application for an order to examine the former director should not be dismissed. The court also granted the extension of time to apply to set aside the examination summons in respect of one of the applicants. The court noted that the liquidators had a legitimate interest in pursuing their investigation and that the former director had not demonstrated any prejudice that would result from the delay. The court also found that the extension of time was appropriate in the circumstances.

The court made an order that the application for an order to examine the former director was not to be dismissed. The court also made an order that an extension of time was granted to apply to set aside the examination summons in respect of one of the applicants.