In the matter of Loreno Pty Ltd

Loreno Pty Ltd applied for reinstatement following its deregistration by the Australian Securities and Investments Commission (ASIC) under section 601AB of the Corporations Act 2001. The company had substantial assets when it was deregistered, and the sole director was in aged care at the time. The application for reinstatement included a request for ancillary orders to appoint new directors and to deem the company as the owner of its property during the period of deregistration, to mitigate potential capital gains tax liability. The court needed to determine whether the orders sought were within its powers and should be granted.

The legal issues before the court included whether the orders for reinstatement and ancillary orders were within the court's statutory powers under section 601AE of the Corporations Act, and whether such orders should be made in the circumstances of this case. The court considered whether the deregistration was unjust and whether the orders sought would rectify the injustice caused by the deregistration, including the potential tax implications for the company.

The court found that the orders for reinstatement and ancillary orders were within its powers under section 601AE of the Corporations Act. The court concluded that the deregistration was unjust as it occurred while the sole director was in aged care and the company held substantial assets. The court granted the orders for reinstatement and ancillary orders, including the appointment of new directors and deeming the company as the owner of its property during the period of deregistration. This decision aimed to rectify the injustice caused by the deregistration and mitigate potential tax liabilities.