Tri-Force Enterprise Limited v Infinite Water Holdings Limited, in the matter of Infinite Water Holdings Limited (administrators appointed) [2024] FCA 78

FEDERAL COURT OF AUSTRALIA

Tri-Force Enterprise Limited v Infinite Water Holdings Limited, in the matter of Infinite Water Holdings Limited (administrators appointed) [2024] FCA 78 File number(s): NSD 1439 of 2023

Judgment of: GOODMAN J

Date of judgment: 15 February 2024

Catchwords: CORPORATIONS – meetings of directors of a public company – where business conducted in the absence of a director who had a material personal interest in the vote – whether a procedural or substantive irregularity – whether failure to give sufficient notice of particular agenda items in the absence of an obligation to do so – whether failure to give adequate notice of meeting – waiver of objection as to the sufficiency of notice in circumstances where the director attends and participates in the meeting CORPORATIONS – where directors sign agreement with a third party – whether a lack of authority to sign such an agreement has been established and if so, whether that renders the agreement void – standing – operation of the indoor management rule and ss 128 and 129 of the Corporations Act 2001 (Cth)

Legislation: Corporations Act 2001 (Cth), ss 127, 128, 129, 140, 175, 191, 195, 236, 248C, 436A, 1322

Cases cited: Atlas Holdings Pty Ltd v Allied Resource Partners Pty Ltd [2017] FCA 923; (2017) 122 ACSR 345 Bell Group Ltd (in liq) v Westpac Banking Corp (No 9) [2008] WASC 239; (2008) 70 ACSR 1 Bell v Burton (1993) 12 ACSR 325 Bentley Capital Ltd v Keybridge Capital Ltd [2019] FCA 1675; (2019) 139 ACSR 289 Career Employment Australia Ltd v Shepley [2021] QSC 235; (2021) 166 ACSR 54 Carew Reid v Public Trustee (1996) 20 ACSR 443 Cordiant Communications (Australia) Pty Ltd v Communications Group Holdings Pty Ltd [2005] NSWSC 1005; (2005) 194 FLR 322 Cummings v Macks [2000] FCA 55; (2000) 96 FCR 345 Dhami v Martin [2010] NSWSC 770; (2010) 241 FLR 165 Eastern Resources of Australia Ltd v Glass Reinforced Products (GRP) Pty Ltd [1987] 2 Qd R 31 Grand Enterprises Pty Ltd v Aurium Resources Ltd [2009] FCA 513; (2009) 256 ALR 1 Johnson v Beitseen (1988) 41 IR 395 La Compagnie de Mayville v Whitley [1896] 1 Ch 788 McGellin v Mount King Mining NL [1998] WASC 96; (1998) 144 FLR 288 Onefone Australia Pty Ltd v One.Tel Ltd [2010] NSWSC 1120; (2010) 80 ACSR 11 Petsch v Kennedy (unreported, Street J, 16 November 1970) Petsch v Kennedy (1971-1973) CLC ¶40-015; [1971] 1 NSWLR 494 Petsch v Kennedy [1972] UKPC 7 Re Deposit Power Pty Ltd [2018] NSWSC 1484 Re Mosaic Oil NL (No 2) [2010] FCA 1186; (2010) 80 ACSR 281 Royal British Bank v Turquand (1856) 119 ER 886 Southern Wine Corporation Ltd (in liq) v Perera [2006] WASCA 275; (2006) 33 WAR 174 Spicer v Mytrent Pty Ltd (1984) 8 ACLR 711 Toole v Flexihire Pty Ltd (1991) 6 ACSR 455 Wilson v Manna Hill Mining Co Pty Ltd [2004] FCA 912