Toshin Development Australia P/L

Toshin Development Australia P/L is the subject of an application by Toshin Kaihatsu K.K., a Japanese company, for winding up on the just and equitable ground. The applicant claims to be the majority shareholder of Toshin Development Australia Pty Ltd, while the respondent disputes this claim. The matter is before the Supreme Court of Queensland. The court must determine the application for directions for the winding up proceedings and the application by the respondent for security for costs. The court's discretion to order security for costs is both an inherent power and pursuant to section 1335 of the Corporations Law. Factors to be considered include the strength and bona fides of the applicant’s case, the cause of the applicant’s impecuniosity, and whether the making of an order for security would stifle the litigation. The court is satisfied that the applicant's case is sufficiently strong and bona fide, and that the making of an order for security would likely prevent the applicant from continuing with the litigation. The application for security for costs is dismissed.

The court provides directions for the further conduct of the winding up application. The applicant must apply to the Yokohama District Court for a variation of the supervision order made on 9 December 1997, allowing Mr Adachi to communicate with certain individuals and organizations for the purpose of addressing matters relevant to the winding up application. The application for winding up is to be placed on the Supervised Case List, and a review is scheduled before the court on 12 April 1999. The costs of the applications for directions and for security for costs are to be costs in the cause.