Re Community Work Pty Ltd (in liq)

The case of Re Community Work Pty Ltd (in liq) involved a dispute concerning the liquidator's entry into a litigation funding agreement on behalf of a company in liquidation. The funder under the agreement was the State of New South Wales, represented by the Department of Family and Community Services (FACS). The key legal issues revolved around whether to approve the liquidator's entry into the funding agreement under section 477(2B) of the Corporations Act 2001 and whether to make a justification order regarding the liquidator's entry into the funding agreement in circumstances where the funder was a potential debtor of the company. Additionally, the court had to consider whether to make a confidentiality order to protect details of the funding agreement. The court concluded that it should approve the liquidator's entry into the funding agreement as it would enable investigations into potential claims against the company's directors and related entities and was in the best interests of the creditors. The court also granted the justification order and the confidentiality order to protect sensitive information related to the funding agreement and the public examinations.