Ernst & Young (Reg) v Tynski Pty Limited [2003] FCAFC 233

FEDERAL COURT OF AUSTRALIA

Ernst & Young (Reg) v Tynski Pty Limited [2003] FCAFC 233 CORPORATIONS – appeal from an interlocutory judgment – authority of directors to institute proceeding in name of companies after appointment of receivers and managers – directors instituted proceeding challenging appointment of receivers and managers and against third party – application by third party to have proceeding dismissed against them – whether prior consent of receivers and managers necessary to institute proceeding in name of companies – whether costs indemnity conditional to institution of proceeding in name of companies in receivership - validity of the solicitors retainers – significance of the directors' challenge to the validity of appointment of the receivers and managers

Brooklands Motor Co Ltd (in rec) v Bridge Wholesale Acceptance Corporation (Australia) Ltd [1993] MCLR 448 considered Chartspike v Chahoud [2000] NSWSC 625 cited Deangrove Pty Ltd (Receivers and Managers Appointed) v Commonwealth Bank of Australia [2001] FCA 173; 108 FCR 77 discussed Dow Jones & Company Inc v Gutnick (2002) 77 ALJR 255 cited Halliday v High Performance Personnel Pty Ltd (in liq) (formerly SACS Group Pty Ltd)(1993) 113 ALR 637 referred to Hawkesbury Development Co Ltd v Landmark Finance Pty Ltd [1969] 2 NSWR 782 referred to Inglis v Moore (No 2) (1979) 46 FLR 470 referred to Moss Steamship Company, Limited v Whinney [1912] AC 254 considered Newhart Developments Ltd v Co-operative Commercial Bank Ltd [1978] QB 814 referred to Tudor Grange Holdings Ltd v Citibank NA [1992] Ch 53 referred to ERNST & YOUNG (REG) v TYNSKI PTY LIMITED (ACN 008 162 123) (RECEIVERS AND MANAGERS APPOINTED)

S 417 of 2003 BRANSON, MARSHALL and STONE JJ 21 OCTOBER 2003 SYDNEY (HEARD IN ADELAIDE)

IN THE FEDERAL COURT OF AUSTRALIA