Wyse & Young International Pty Ltd t/as Wyse & Young Accounting v Corrado

In the case of Wyse & Young International Pty Ltd t/as Wyse & Young Accounting v Corrado, the plaintiffs, who are accounting professionals, sought the reinstatement of the defendant company, which had been deregistered. They also sought to prevent the first defendant, Mr Corrado, from disposing of the company’s assets. The dispute was heard in the Supreme Court of New South Wales. The plaintiffs argued that they were persons aggrieved by the deregistration of the company and that the company should be reinstated as they could expect a distribution upon a winding-up.

The court had to determine whether the plaintiffs were indeed persons aggrieved by the deregistration, and if so, whether the company should be reinstated given that it would have to be wound up immediately if reinstated. The court also needed to decide whether the plaintiffs had provided sufficient evidence to support their application for freezing orders against Mr Corrado. The plaintiffs argued that Mr Corrado would put assets out of reach, falsely claimed not to have signed certain documents, and intended to defraud creditors. However, the court found that there was no evidence of bad faith, and the plaintiffs had not shown that they had strong claims against the company.

The court held that the plaintiffs were not persons aggrieved by the deregistration as there was no evidence that they could expect to receive a distribution upon a winding-up. The application for reinstatement was dismissed. The court also dismissed the application for freezing orders due to the insufficiency of evidence provided by the plaintiffs. Regarding the security for costs, the court found that the plaintiffs’ limited and late response to a notice to produce, and the insufficiency of the solicitor’s evidence on information and belief as to the plaintiff companies’ financial position, were significant factors in granting the application for security for costs. The court considered that the plaintiffs had not met the evidentiary burden required under section 1335 of the Corporations Act.