Re Featherston Resources Ltd

In the case of Re Featherston Resources Ltd, the respondents were shareholders of the company Featherston Resources Ltd, a company incorporated in the United Kingdom but registered in Australia as a foreign company. The dispute arose when the respondents sought to bring a statutory derivative action on behalf of the company, as well as to seek leave to commence proceedings in the name of the company, which was in liquidation. The respondents also sought to have the court stay any proceedings in New Zealand that were being conducted by an administrator appointed by a court in that jurisdiction. The case was heard in the Federal Court of Australia.

The central legal issues before the court were whether a registered foreign company, such as Featherston Resources Ltd, could be the subject of a statutory derivative action, and whether a creditor or contributory could bring proceedings in the name of a company in liquidation that was subject to foreign administration. Additionally, the court had to determine if an application for leave to bring a derivative action constituted a proceeding against the company or in respect of its property, and if so, whether this would warrant a stay of proceedings in light of the Trans-Tasman Proceedings Act 2010.

The court found that a registered foreign company is not a company "registered under the Corporations Act" and therefore could not be the subject of a statutory derivative action. The court held that since the company was a foreign corporation, the statutory derivative action provisions did not apply. Furthermore, the court ruled that leave to bring proceedings in the name of a company in liquidation was not available if the company was subject to foreign administration. The court clarified that an application for leave to bring a derivative action did not constitute a proceeding against the company or in respect of its property, and therefore, the court did not have the jurisdiction to stay proceedings in New Zealand under the Trans-Tasman Proceedings Act 2010.

In conclusion, the court dismissed the respondents' applications, holding that the statutory derivative action was not available in respect of a registered foreign company, that leave to bring proceedings in the name of a company in liquidation was not available in the circumstances, and that the application for leave did not constitute a proceeding against the company or in respect of its property warranting a stay under the Trans-Tasman Proceedings Act 2010.