REPRESENTED BY
Walter Silvester
Email: walter@silvesterlegal.com
WHAT WE ACHIEVED
Ultimately, the Statement of Claim of the Plaintiffs was struck out as the Court held that the Plaintiffs failed to obtain leave of court before commencing the action against the 2nd and 3rd Defendants. The 2nd Defendant was the company that was undergoing a creditor’s voluntary winding up and the 3rd Defendant was the liquidator of said company.
CASE SUMMARY
[Civil procedure – whether leave of court is required for the commencement of proceedings against a company that is undergoing voluntary winding up, whether the pleading should be struck out]
The Plaintiff was intending to commence proceedings against a company that is undergoing voluntary winding up. The Court hence had to consider three main issues, whether the leave of court requirement under s 299(2) of the Companies Act (before it was repealed) is for creditors’ voluntary winding up or members’ voluntary winding up, whether the company itself is undergoing a creditors’ or members’ winding up and whether leave of court is required for an action against the liquidator of a company undergoing winding up.
Despite Mr Silvester’s efforts in arguing against the applicability of this leave requirement to the case, the Court ultimately held that leave of court is required in this case as it was a company that was undergoing a creditor’s voluntary winding up under s 299(2) of the Companies Act (before it was repealed).
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