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ARTICLE · 25 JULY 2020

Deprived So Revived: Owners Corp Successfully Reinstates Developer To Pursue Alleged Defect Claims

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The company, wound up and deregistered, was reinstated to face claims by the Owners Corporation over alleged defects.

AustraliaReal Estate and Construction
Cameron Cheetham
Cameron Cheetham
Mark Wilks
Mark Wilks
Craig Ensor
Craig Ensor
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This week's TGIF considers a decision of the NSW Supreme Court which led to a company, wound up and deregistered after completion of a development, being reinstated to face claims by the Owners Corporation over alleged defects.

Key takeaways

  • The Court's discretion to reinstate a company will be enlivened if a party is able to demonstrate it is aggrieved by the deregistration and that reinstatement would be just.
  • The expression 'aggrieved' should not be construed narrowly and will include a creditor precluded from bringing a claim against the company by reason of the de-registration.
  • If the deregistered company has been through a winding up, the aggrieved creditor bears the risk of funding a liquidator to conduct investigations and identify assets by which to satisfy their claim.

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