Masri Apartments Pty Ltd (in liq) v Perpetual Nominees Ltd

Masri Apartments Pty Ltd (in liq) v Perpetual Nominees Ltd concerned an application by the directors of Masri Apartments Pty Ltd and AUS Constructions Pty Ltd for leave to pursue an appeal against winding-up orders made by Austin J. The application was brought under s 471A of the Corporations Act 2001 (Cth). The court was required to determine whether the appeal had a reasonable prospect of success and whether prejudice would arise if a stay of the winding-up orders was not granted. A further issue was whether the application was governed by s 482 of the Corporations Act or by specific Supreme Court Rules of New South Wales concerning stays and appeals.

The court considered the principles relevant to granting approval under s 471A(1A)(d) of the Corporations Act, which includes considerations such as the protection of the resources of an insolvent company. The court reasoned that leave should be granted to allow the directors to pursue an appeal and seek a stay of the winding-up orders. The court found that the directors had demonstrated sufficient grounds to warrant the granting of leave to appeal and to stay the winding-up proceedings.

Consequently, the court granted leave to Masri Apartments Pty Limited and AUS Constructions Pty Limited, by their directors, to bring an application for a stay of the winding-up orders and to file and pursue an appeal against the decision of Austin J. The winding-up of both companies was stayed until further order. The costs of the application were made costs in the appeal, and the appeal was expedited for hearing.