This case is not about an everyday company setup mistake. It is an extreme version of a question founders sometimes ask in smaller form: if something was wrong when a company was formed, can that undo everything later? The Full Court's answer was strongly against using historical formation defects to erase a registered company decades after ASIC's predecessor had registered it and issued a certificate.
The case turned on corporate registration machinery, conclusive evidence rules, the scope of section 1322 and the difference between fixing irregularities and depriving a company of corporate existence. The Court dismissed the appeal and also referred the question of possible vexatious proceedings orders for consideration, which shows how firmly it viewed the litigation history.
For small businesses, the practical point is more ordinary. Get company setup right at the start, keep ASIC records current, and fix errors promptly. But do not treat a company record issue as a magic undo button. Banks, customers, creditors, contracts, tax records, licences and court orders may all have relied on the company existing. If there is a real historical defect, the solution is usually targeted correction and advice, not pretending the company never existed.