Introduction
In the matter of Benjamin Hornigold Ltd v John Bridgeman Limited [2023] FCA 1195, the Federal Court of Australia considered section 453S of the Corporations Act 2001 (Cth) (Act) and the circumstances as to when leave should be granted for proceedings to be commenced against a company undergoing a restructure pursuant to the small business restructuring (SBR) regime. It was the first case to consider the stay of proceedings for SBR, due to the relatively recent introduction of the SBR regime.
The decision provides clarity in that the legislation governing SBR should be interpreted similarly to the legislation governing voluntary administration. The Federal Court decision also provides guidance as to the factors considered by …
Read the full article at: https://chamberlains.com.au/can-we-commence-proceedings-against-a-company-under-the-small-business-restructuring-regime-a-case-analysis-of-benjamin-hornigold-ltd-v-john-bridgeman-limited-2023-fca-1195/