Where's your COMI? - Recognition of foreign proceeding

This week's TGIF considers Wood v Astra Resources Ltd (UK Company No 07620218) [2016] FCA 1192, in which the Federal Court was asked to recognise a foreign proceeding under the Model Law on Cross Border Insolvency.

BACKGROUND

In November 2015, the High Court of Justice in England and Wales ordered that a UK company be wound up. The liquidators of the company then sought recognition in Australia of the proceedings in the UK under the United Nations Commission on International Trade Law Model Law on Cross-Border Insolvency (Model Law). Alternatively, the liquidators sought an order for the winding up of the company in Australia pursuant to s 583(c) of the Corporations Act.

The Model Law is given force in Australia by s 6 of the Cross-Border Insolvency Act 2008. Under the Model Law, for an Australian Court to recognise a foreign proceeding, it must be satisfied that the foreign proceeding is taking place in the same state as where the debtor has the centre of its