McMillan v Coolah Home Base (No 2)

McMillan brought proceedings against Coolah Home Base, which had entered voluntary administration. McMillan sought leave to proceed with the proceedings under section 444E of the Corporations Act. The Federal Circuit and Family Court of Australia was asked to determine whether McMillan could proceed with the action despite the company's voluntary administration. The central legal issue was whether the court should grant McMillan leave to continue the proceedings against Coolah Home Base under section 444E, given the company's status in voluntary administration.

The court examined the statutory provisions and case law relevant to section 444E. It found that the provision allowed the court to grant leave for a creditor to proceed with proceedings against a company in voluntary administration if certain conditions were met. The court considered whether the grant of leave would be in the interests of justice, including whether McMillan's action was likely to succeed and the potential impact on the administration process and other creditors. Ultimately, the court determined that granting leave was in the interests of justice, as McMillan had a strong case and the other creditors would not be prejudiced by the continuation of the proceedings.

The court concluded that McMillan was entitled to proceed with the action against Coolah Home Base. The Federal Circuit and Family Court of Australia granted McMillan leave to continue the proceedings under section 444E of the Corporations Act. This decision allowed McMillan to pursue the matter against Coolah Home Base despite the company's voluntary administration.