Majans Pty Ltd

In the matter of *Majans Pty Ltd*, the applicant, Majans Pty Ltd, sought to wind up the respondent, a company, on the grounds of insolvency. The dispute centred on whether the respondent was in fact unable to pay its debts as they fell due. The application was heard by Katrina Brown.

The primary legal issue before the court was to determine whether the respondent company was insolvent for the purposes of section 459E of the *Corporations Act 2001* (Cth). This required the court to assess whether the respondent was unable to pay its debts as they became due and payable, or whether the value of its liabilities exceeded the value of its assets.

The court considered the evidence presented by both parties regarding the respondent's financial position. It applied the principles of insolvency law, focusing on the cash-flow test of insolvency, which assesses a company's ability to meet its immediate financial obligations. The court found that the evidence did not establish that the respondent was unable to pay its debts as they fell due, nor that its liabilities exceeded its assets.

Consequently, the application to wind up the respondent company was dismissed.