Re Ausorb Pty Limited

The proceeding concerned an application by Ausorb Pty Limited (the applicant) for the winding up of a company, Ausorb Pty Limited (the respondent), on the grounds of insolvency. The applicant sought the appointment of a liquidator to wind up the respondent company.

The primary legal issue before the court was whether the respondent company was unable to pay its debts as they became due, thereby satisfying the criteria for compulsory winding up under the *Corporations Act 2001* (Cth). This involved an assessment of the respondent's financial position and its capacity to meet its liabilities.

Justice Homann found that the evidence presented established that the respondent company was indeed insolvent. The court considered the respondent's failure to pay a statutory demand, which is a significant indicator of insolvency. Furthermore, the court noted the absence of any credible evidence to suggest the respondent possessed the means to discharge its outstanding debts. Consequently, the court ordered that the respondent company be wound up.