In the matter of Likehart Pty Ltd (deregistered)

The case involves Likehart Pty Ltd, a company that was deregistered, and the plaintiffs who sought to reinstate it. The matter was heard in a court in Australia. The plaintiffs' aim was to reinstate the company to enable them to bring a derivative action on its behalf, seeking to hold the company's former directors accountable for alleged breaches of directors' duties.

The primary legal issue before the court was whether to grant leave to reinstate the deregistered company under section 601AH(2) of the Corporations Act 2001 (Cth). This required consideration of whether the company was apparently insolvent, and whether there was any consent to the appointment of a liquidator. Additionally, the court had to determine whether the plaintiffs were likely to be granted leave to bring a derivative action, given its current formulation.

The court found that the company was apparently insolvent and that no consent had been obtained to appoint a liquidator. Given these circumstances, the court considered it unlikely that leave would be granted to the plaintiffs to bring a derivative action. The court emphasised that the formulation of the proposed derivative action was improper, further complicating the prospects for leave being granted. Consequently, the court declined to reinstate the company, considering it would be unjust to do so under the prevailing conditions.

The court's decision concluded that the application for reinstatement was dismissed. The plaintiffs were not granted leave to bring a derivative action, and the court did not order the reinstatement of the deregistered company.