Akierman Holdings Pty Ltd v Akerman (No 2) [2020] NSWSC 970

Supreme Court New South Wales

Medium Neutral Citation: Akierman Holdings Pty Ltd v Akerman (No 2) [2020] NSWSC 970 Hearing dates: 6, 9 April 2020; further written submissions ending 15 June 2020 Date of orders: 30 July 2020 Decision date: 30 July 2020 Jurisdiction: Equity - Corporations List Before: Parker J Decision: See [223]-[227] Catchwords: CORPORATIONS — directors and officers —unauthorised transfer by director of company's share of real property to himself – liability of director as trustee – liability as recipient to make restitution – liability for breach of director's duties RESTITUTION – ineffective transaction – transfer of company's share of real property – void for want of authority but registered – whether company entitled to share of increase in value in property and share of net income from property since date of transfer – equitable proprietary relief EQUITY – jurisdiction in aid of rights at law – transfer of company's share of real property – void for want of authority but registered – rescission – account of value of property and income derived from it – interest CORPORATIONS – director and officers – invalid resolution by director to pay director's fees to himself – liability as recipient to make restitution – whether director entitled to counter-restitution by way of quantum meruit – whether incontrovertible benefit CORPORATIONS – director and officers –unauthorised payment by director to himself as solicitor – liability as recipient to make restitution – whether director-solicitor entitled to counter-restitution by way of quantum meruit – whether incontrovertible benefit Legislation Cited: Civil Procedure Act 1995 (NSW), s 100(1) Companies (Winding up) Act 1890, 53 & 54 Vict, c 63, s 10 Companies Act 1936 (NSW), ss 148, 308 Conveyancing Act 1919 (NSW), s 66G Corporation Act 2001 (Cth), ss 140(1) 180(1), 181(1), 182(1), 237, 260A, 1317H Grants of Life Annuity Act 1776, 17 Geo 3, c 26 Real Property Act 1900 (NSW), ss 42, 118 Cases Cited: Alati v Kruger (1955) 94 CLR 216 Australia & New Zealand Banking Group Ltd v Westpac Banking Corporation (1988) 164 CLR 662 Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd (2014) 253 CLR 560 Bank of New South Wales v Fiberi Pty Ltd (1992) 8 ACSR 790 Barnes v Addy (1874) LR 9 Ch App 244 Belmont Finance Corporation v Williams Furniture Limited (No 2) [1980] 1 ALL ER 393 Bromley v Holland (1802) 7 Ves Jun 3; 32 ER 2 Cassegrain v Gerard Cassegrain & Co Pty Ltd (2014) 254 CLR 425 Commonwealth Bank of Australia v Hatfield (2001) 53 NSWLR 614 Commonwealth of Australia v SCI Operation Pty Ltd (1998) 192 CLR 285 Coshott v Lennin [2007] NSWCA 153 Craven-Ellis v Canons Ltd [1936] 2 KB 40 Criterion Properties PLC v Stratford UK Properties LLC [2004] 1 WLR 1846 Cullerne v The London and Suburban General Permanent Building Society (1890) 25 QBD 485 David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Feret v Hill (1854) 15 CB 206; 139 ER 400 Great Investments Ltd v Warner (2016) 243 FCR 516 Guinness PLC v Saunders [1990] 2 AC 663 Hagan v Waterhouse (No 2) (1991) 34 NSWLR 308 Heydon v NRMA Ltd (No 2) (2001) 53 NSWLR 600 Kalls Enterprises Pty Ltd v Baloglow [2007] NSWCA 191 Lahoud v Lahoud [2010] NSWSC 1297 Langman v Handover (1929) 43 CLR 334 Lumbers v W Cook Builders Pty Ltd (2008) 232 CLR 635 Mulkana Corporation Ltd v Bank of New South Wales (1983) 8 ACLR 278 O'Halloran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Portsea Island Building Society v Barclay [1894] 3 Ch 8 Portsea Island Building Society v Barclay [1895] 2 Ch 298 President of the India v La Pintada Compania Navigacion SA [1985] AC 104 R v Byrnes (1995) 183 CLR 501 Re Canadian Land Reclaiming and Colonizing Company (1880) 14 Ch D 660 Re Dawson [1966] 2 NSWR 211 Re Ferguson (1969) 14 FLR 311 Re International Vending Machines Pty Ltd [1962] NSWR 1408 Re Iris McLaren (No 2) [2019] NSWSC 1894 Re Lands Allotment Company [1894] 1 Ch 616 Re Sharpe [1892] 1 Ch 154 Richard Brady Franks Ltd v Price (1937) 58 CLR 112 Roxborough v Rothmans of Pall Mall Australia Ltd (2001) 208 CLR 516 Russell Gould Pty Ltd v Ramangkura (2014) 87 NSWLR 552 Selangor United Rubber Estates Ltd v Cradock (No 3) [1968] 2 ALL ER 1073 Smits v Roach (2004) 60 NSWLR 711 Steen v Law, Liquidator of International Vending Machines Pty Ltd (1963) 63 SR (NSW) 511; [1964] AC 287 Svanosio v McNamara (1956) 96 CLR 186 Torrens Aloha Pty Ltd v Citibank Na (1997) 72 FCR 581 Trimis v Mina [1999] NSWCA 140 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 Texts Cited: Austin, R P, H A J Ford and I M Ramsay, Company Directors Principles of law & Corporate Governance (1st ed, 2005, LexisNexis Butterworths) Birks, P, Unjust Enrichment (2nd ed, 2005, Oxford University Press) Campbell, S, 'Usury and Annuities of the Eighteenth Century' (1928) 44 LQR 473 Edelman, J and E Bant, Unjust Enrichment in Australia (2nd ed, 2016, Oxford: Hart Publishing) Heydon, J D and M J Leeming, Jacobs' Law of Trusts in Australia (8th ed, 2016, LexisNexis Butterworths) Heydon, J D, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) Mason, K, J W Carter and G J Tolhurst, Mason & Carter's Restitution Law in Australia (3rd ed, 2016, LexisNexis Butterworths) Mitchell, C, P Mitchell and S Watterson, Goff & Jones The Law of Unjust Enrichment (9th ed, 2016, Sweet & Maxwell) O'Sullivan, D, S Elliott and R Zakrzewski, The Law of Rescission (2nd ed, 2014, Oxford) Restatement of the Law Third: Restitution and Unjust Enrichment (American Law Institute Publisher, 2011) Category: Consequential orders (other than Costs) Parties: Akierman Holdings Pty Ltd (Plaintiff) Steven Akerman (Defendant)