Re Reef Cove Resort Limited

In the case of Re Reef Cove Resort Limited, the applicant sought to wind up the respondent company on the basis of insolvency. The respondent is a foreign company registered under the Corporations Act 2001 (Cth) and had purported to appoint administrators and execute a Deed of Company Arrangement. The primary issue before the court was whether the respondent was subject to the provisions of the Corporations Act relating to external administration and whether it should be wound up.

The court examined the relevant provisions of the Corporations Act and considered whether the respondent was a company to which those provisions applied. It was noted that the respondent had purported to appoint administrators and execute a Deed of Company Arrangement, which are mechanisms provided for in the Act. However, the court found that the respondent's actions did not meet the requirements of the Act, and therefore it was not subject to the external administration provisions. Consequently, the court determined that the respondent ought to be wound up.

The court ordered that Reef Cove Resort Limited be wound up by the Court under the Corporations Act 2001 (Cth). Jonathan McLeod was appointed as liquidator to conduct the winding up, and the costs of the applicant of and incidental to this application, including issuing and serving the Creditor’s Demand for Payment of Debt, were to be costs in the winding up.