Ku v Song [2007] FCA 1189

FEDERAL COURT OF AUSTRALIA

Ku v Song [2007] FCA 1189

CORPORATIONS – requirements for a valid transfer of shares in an unlisted company

CONTRACTS – intention to make a contract – when void for uncertainty – construction principles – implication of terms – collateral contracts

TRUSTS – express trusts – implied resulting trusts

GIFTS INTER VIVOS – incomplete gift

Held: No shares had been validly transferred to entitle the third respondent, as a putative transferee of all the issued shares in a company, to remove the applicant as an officer. An intended gift inter vivos of shares had not been perfected. An agreement for the settlement of other proceedings had been repudiated and terminated.

Corporations Act 2001 (Cth) ss 135(2), 176, 251A(2)-(4), 251A(6), 761A, 1041H, 1070A(1), 1071A, 1071B, 1071D(1), 1072F, 1072G, 1073A(1), 1073D, 1073F, 1274B(2) and 1404 Corporations Regulations 2001 (Cth) regulations 7.11.10, 7.11.11, 7.11.14, 7.11.15 and 7.11.22 Trade Practices Act 1974 (Cth) s 51AA and s 52 Fair Trading Act 1987 (NSW) s 42

Rose and Frank Company v J. R. Crompton and Brothers, Limited [1923] 2 KB 261 applied Eccles v Bryant (1947) 2 All ER 865 applied Sindel v Georgiou (1984) 154 CLR 661 referred to Australian (sic) and New Zealand Banking Group Ltd. v Frost Holdings Pty Ltd. (1989) VR 695 cited Powell and Berry v Jones and Jones (1968) SASR 394 cited Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 cited The Council of the Upper Hunter County District v Australian Chilling and Freezing Co. Limited (1968) 118 CLR 429 cited Whitlock v Brew (1968) 118 CLR 445 referred to Life Insurance Co of Australia Ltd. v. Phillips (1925) 36 CLR 60 referred to Bishop v. Taylor(1968) 118 CLR 518 referred to Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 referred to Equuscorp Pty Ltd v HGT Investments Pty Ltd (2005) 218 CLR 471 referred to Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99 applied Codelfa Construction Proprietary Limited v State Rail Authority of New South Wales (1982) 149 CLR 337 cited Whitworth Street Estates Limited v Miller (1970) AC 583 cited Port Sudan Cotton Co v Govinda Swami Chettiar & Sons (1977) 2 Lloyd's LR 5 referred to Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 referred to B.P. Refinery (Westernport) Pty. Limited v President, Councillors and Ratepayers of the Shire of Hastings (1977) 180 CLR 266 cited Hoyt's Proprietary Limited v Spencer (1919) 27 CLR 133 referred to Chapman v Chapman [1983] 2 NSWLR 420 referred to Gates v The City Mutual Life Assurance Society Limited (1986) 160 CLR 1 referred to Russell v Scott (1936) 55 CLR 440 referred to Wirth v Wirth (1956) 98 CLR 228 referred to Hepworth v Hepworth (1963) 110 CLR 309 referred to Bloch v Bloch (1981) 180 CLR 390 referred to Muschinski v Dodds (1985) 160 CLR 583 cited Baumgartner v Baumgartner (1987) 164 CLR 137 referred to Barclays Bank Ltd. v Quistclose Investments Ltd. [1970] AC 567 explained Carreras Rothmans Ltd. v. Freeman Mathews Treasure Ltd. [1985] 1 Ch 207 cited Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 cited Damberg v Damberg (2001) 52 NSWLR 492 referred to Milroy v Lord (1862) 4 DeGF & J 264 [45 ER 1185] referred to Cope v Keene (1968) 118 CLR 1 referred to Brunker v Perpetual Trustee Company (Limited) (1937) 57 CLR 555 referred to Anning v Anning (1907) 4 CLR 1049 referred to Henjo Investments Pty Limited v Collins Marrickville Pty Limited (1988) 79 ALR 83 referred to