The bank had sold the property (belonging jointly to the company and others) but had suffered a shortfall. It wanted to recover the shortfall from the company, however the company had been deregistered due to failing to file annual returns and failing to pay outstanding fees.
The bank asked the court for an order that ASIC reinstate the company. ASIC told the court it agreed to the order only if the director of the company lodged the documents and paid the outstanding fees, or alternatively if the company was immediately wound up. The director of the company asked the Court not to wind the company up and appoint a liquidator, and said she would pay the outstanding fees.
The judge confirmed that he had the power to make an immediate order for the winding up of a company on reinstatement, and that the winding up order could be made on the grounds that it was just and equitable.
The judge ordered that the company be reinstated by ASIC. He also ordered that the company should be immediately wound up upon registration, and stated this was because the director had not taken any steps or given any written undertaking to pay the fees at any time since the bank made the application.