Re Buddies Investments Pty Ltd

The case of Buddies Investments Pty Ltd involves an application by Ms Olsen, a director and contributory of the company, for the setting aside of the appointment of a liquidator and for an order that the Australian Securities Commission (ASC) pay all associated costs. The company had been wound up due to an error by the ASC in recording the company's address, which led to statutory demands and winding-up proceedings being served at the wrong address. The court was required to determine whether the ASC was liable for the costs incurred by the creditor, the liquidator, and the company due to the error. Additionally, the court had to decide on the validity of the liquidation proceedings and whether the ASC could be held liable for the costs of the application as a non-party. The court found that the ASC's error was an act done in purported performance of a function under a national scheme law, thus protected by immunity. However, the court held that the ASC was liable for the costs of the application itself, as the error led to an abuse of process and unnecessary costs incurred by innocent parties. The court terminated the liquidation and ordered the ASC to pay the costs of the application.