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Transport Fest Ltd ("TF") used to be a major player in the transport business in NSW, Australia. However, the company has gone through some financial difficulties in recent years. TF currently owes its creditors up to $6,000,000 which it has been unable to pay. The creditors want to deregister the company and use all its assets to pay its debts. The directors decided to put the company into voluntary administration and appointed an administrator with effect from 25 November 2015. The creditors are impatient and want to deregister the company without further delay so that it will cease to exist and they can use all its assets to satisfy its debts.
REQUIRED:
Advise the creditors on whether they can take any action to deregister the company during the period of voluntary administration. Would your answer be different if there was no voluntary administration? Assuming there was no voluntary administration, what options would you suggest to the creditors if they want to de-register the company so that it will cease to exist as a legal entity and how can they pursue those options? Discuss by applying relevant Australian law.
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