Porteous v Donnelly (Trustee), in the matter of Hancock (Bankrupt) [2002] FCA 862

FEDERAL COURT OF AUSTRALIA

Porteous v Donnelly (Trustee), in the matter of Hancock (Bankrupt) [2002] FCA 862 BANKRUPTCY – proof of debt admitted by Trustee in Bankruptcy – application to expunge proof of debt - debt resulting from bankrupt's breach of fiduciary duty – second respondent's purchase of share - alleged overvaluation – vendor of share was de facto director of second respondent at time of sale EQUITY – fiduciary duty of de facto director CORPORATIONS – whether overvalued share purchase ratified by company – exoneration CORPORATIONS LAW – s1318 Bankruptcy Act 1966 (Cth) s 82(1), s 82(2) Corporations Law s 1318

St Aubyn v Attorney-General [1952] AC 15, referred to Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337, followed Castlemaine Tooheys v Carlton & United Breweries Ltd (1987) 10 NSWLR 468, considered Permanent Building Society v Wheeler (1994) 14 ACSR 109, referred to Abeles v PA Holdings Pty Ltd (2000) NSWSC 1008, (2000)18 ACLC 867, referred to Winthrop Investments Ltd v Winns Ltd [1975] 2 NSWLR 666, referred to ROSEMARIE PORTEOUS v MAX CHRISTOPHER DONNELLY (AS TRUSTEE OF THE ESTATE OF THE LATE LANGLEY GEORGE HANCOCK, A BANKRUPT) & ANOR N 8328 of 1999 STONE J 8 JULY 2002 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 8328 OF 1999

BETWEEN: ROSEMARIE PORTEOUS

APPLICANT

AND: MAX CHRISTOPHER DONNELLY (as Trustee of the Estate of the late Langley George Hancock, a Bankrupt)

FIRST RESPONDENT

THE HANCOCK FAMILY MEMORIAL FOUNDATION LIMITED ACN 008 499 312

SECOND RESPONDENT

JUDGE: STONE J

DATE OF ORDER: 8 JULY 2002

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. The application be dismissed. 2. The applicant pay the respondents'costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.