In the matter of SCW Pty Ltd (in liq)

The liquidator of SCW Pty Ltd brought an application to terminate the winding up of the company. The company had been wound up on just and equitable grounds due to a deadlock between its directors. One of the directors had subsequently become the sole director and shareholder of the company, and the liquidator argued that the circumstances leading to the winding up had been alleviated. The matter was heard by the Federal Court of Australia.

The legal issue before the court was whether it was appropriate to make an order terminating the winding up of the company when the circumstances leading to the winding up had been alleviated, and the company had been solvent at all times. The court considered the relevant statutory provisions, the circumstances of the case, and the principles of equity in its decision.

The court found that it was appropriate to terminate the winding up of the company. The circumstances leading to the winding up had been alleviated by the removal of the deadlock between the directors, and the company had been solvent throughout the proceedings. The court considered that the principles of equity required the winding up to be terminated in these circumstances, and made an order accordingly.

The court's final order was that the winding up of SCW Pty Ltd be terminated with effect from the date of the order. The court also made orders for the payment of costs of the application.