Humphris v Jenshol [1997] FCA 1053

FEDERAL COURT OF AUSTRALIA

CORPORATIONS - Director's duties - whether director used, transferred or appropriated asset to the disadvantage of company - asset consisted of a substantial number of existing customer connections to a telecommunications service - whether asset of any value. EQUITY - breach of fiduciary duties - remedy - time for election between damages and account of profits. PRACTICE AND PROCEDURE - Mareva injunction - whether Mareva injunction may be continued after judgment for the purpose of assisting execution. Corporations Law: s 232, s 474, s 483 Stewart Chartering Ltd v C & O Managements SA [1980] 1 WLR 460, applied Jackson v Sterling Industries Ltd (1987) 162 CLR 612, applied Phipps v Boardman [1967] 2 AC 46, applied Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41, cited Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134, applied Royal Brunei Airlines Sdn Bhd v Tan Kok Ming [1995] 2 AC 378, applied Commonwealth Bank of Australia v Smith (1991) 42 FCR 390, cited Chan v Zacharia (1984) 154 CLR 178, cited Brady v Stapleton (1952) 88 CLR 322, applied Tang Man Sit v Capacious Investments Ltd [1996] 1 AC 514, considered MICHAEL HUMPHRIS (IN HIS CAPACITY AS LIQUIDATOR OF MIDCHARM PTY LTD) (IN LIQUIDATION) & MIDCHARM PTY LTD v MAX SAMUEL JENSHOL & JUSTICE TELECOMMUNICATIONS PTY LTD VG 3185 of 1997 GOLDBERG J MELBOURNE 15 OCTOBER 1997

IN THE FEDERAL COURT OF AUSTRALIA ) ) VICTORIA DISTRICT REGISTRY ) VG 3185 of 1997 ) GENERAL DIVISION )

BETWEEN: MICHAEL HUMPHRIS (IN HIS CAPACITY AS LIQUIDATOR OF MIDCHARM PTY LTD) (IN LIQUIDATION) (ACN 063 784 083)

First Applicant

and

MIDCHARM PTY LTD (IN LIQUIDATION)

(ACN 063 784 083)