Pages Property Investments Pty Ltd v Attila Boros & Ors [2020] NSWSC 1270

Supreme Court New South Wales

Medium Neutral Citation: Pages Property Investments Pty Ltd v Attila Boros & Ors [2020] NSWSC 1270 Hearing dates: 30-31 July 2020; 4-7 August 2020; 11-12 August 2020 Date of orders: 17 September 2020 Decision date: 17 September 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Judgment for Plaintiff on certain claims as set out. Second, Fifth, Sixth and Seventh Defendants wound up on the just and equitable ground. Catchwords: CORPORATIONS — Members' rights and remedies — Oppression — Winding up on the just and equitable ground — Failure to keep adequate books and records — Where conflicting sets of accounts needed to be reconstructed to ascertain companies' financial positions — Where nature of significant account entries and transactions still cannot be explained — Where companies' affairs not conducted for the benefit of the members as a whole. CORPORATIONS — Directors and officers — Directors' duties — Duty to act in good faith in the best interests of company and for proper purpose — Duty not to use position as director or officer improperly — Directors' involvement in transactions between a company in which they are a director and a company in which they have financial interests in. EQUITY — Fiduciary duties — Conflict of interest and duty — Informed consent — Directors' involvement in transactions between a company in which they are a director and a company in which they have financial interests in. Legislation Cited: - Civil Procedure Act 2005 (NSW), s 101(4) - Corporations Act 2001 (Cth), ss 180, 181, 182, 232, 233, 249B, 286, 344, 461(1)(e), 461(1)(k), 1317E, 1317H, 1317J, 1317K, 1317S(2), 1318 - Evidence Act 1995 (NSW), ss 136, 140 - Trustee Act 1925 (NSW), s 85 Cases Cited: - Asia Pacific Joint Mining Pty Ltd v Allways Resources Holdings Pty Ltd [2018] QCA 48; (2018) 125 ACSR 227 - Australia and New Zealand Banking Group Ltd v Westpac Banking Corp (1988) 164 CLR 662 - Australian Securities and Investments Commission v ABC Funds Managers Ltd [2001] VSC 383; (2001) 39 ACSR 443 - Australian Securities and Investments Commission v ActiveSuper Pty Ltd (No 2) [2013] FCA 234 - Australian Securities and Investments Commission v Cassimatis (No 8) [2016] FCA 1023; (2016) 336 ALR 209 - Australian Securities and Investments Commission v Chase Capital Management Pty Ltd [2001] WASC 27; (2001) 36 ACSR 778 - Australian Securities and Investments Commission v Drake (No 2) [2016] FCA 1552; (2016) 340 ALR 75; 118 ACSR 189 - Australian Securities and Investments Commission v Edwards (No 3) [2006] NSWSC 376; (2006) 57 ACSR 209 - Australian Securities and Investments Commission v Flugge and Geary [2016] VSC 779; (2016) 342 ALR 1 - Australian Securities and Investments Commission v Healey [2011] FCA 717; (2011) 196 FCR 291; 278 ALR 618; (2011) 83 ACSR 484 - Australian Securities and Investments Commission v Healey (No 2) [2011] FCA 1003; (2011) 85 ACSR 654 - Australian Securities and Investments Commission v Rich [2009] NSWSC 1229; (2009) 236 FLR 1 - Birtchnell v Equity Trustees Executors and Agency Co Ltd [1929] HCA 24; (1929) 42 CLR 384; [1929] ALR 273 - Briginshaw v Briginshaw (1938) 60 CLR 336 - Brunninghausen v Glavanics [1999] NSWCA 199; (1999) 46 NSWLR 538; 32 ACSR 294; 17 ACLC 1247 - Bull v Lee (No 2) [2009] NSWCA 362 - Carr v Finance Corp of Australia Ltd (No 1) (1981) 147 CLR 246; [1981] HCA 20 - Cassimatis v Australian Securities and Investments Commission [2020] FCAFC 52; (2020) 376 ALR 261; (2020) 144 ACSR 107 - Charlton v Baber [2003] NSWSC 745; (2003) 47 ACSR 31; 21 ACLC 1671 - Commonwealth of Australia v Amann Aviation Pty Ltd (1991) 174 CLR 64 - Coope v LCM Litigation Fund Pty Ltd [2016] NSWCA 37; (2016) 333 ALR 524 - Daniels v Anderson (1995) 37 NSWLR 438 - Dhami v Martin [2010] NSWSC 770; (2010) 79 ACSR 121; 241 FLR 165; BC201004930 - Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599 - Fox v Percy (2003) [2003] HCA 22; 214 CLR 118 - Gerace v Auzhair Supplies Pty Ltd (in liq) [2014] NSWCA 181; (2014) 87 NSWLR 435; 100 ACSR 465 - Great Southern Finance Pty Ltd (in liq) v Rhodes [2014] WASC 431; (2014) 103 ACSR 137 - Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296; 287 ALR 22; 87 ACSR 260 - Hart Security Australia Pty Ltd v Boucousis [2016] NSWCA 307 - Hills Industries Ltd v Australian Financial Services and Leasing Pty Ltd [2012] NSWCA 380 - Holyoake Industries (Vic) Pty Ltd v V-Flow Pty Ltd [2011] FCA 1154; (2011) 86 ACSR 393 - Howard v Commissioner of Taxation [2014] HCA 21; (2014) 309 ALR 1 - Howard Smith Ltd v Ampol Petroleum Ltd [1974] AC 821; [1974] 1 NSWLR 68; [1974] 1 All ER 1126; (1974) 3 ALR 448 - Hurford Hardwood Kempsey Pty Ltd v Kempsey Timbers (Sawmilling) Pty Ltd (No 5) [2020] NSWSC 287 - JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 - John Shaw and Sons (Salford) Ltd v Shaw [1935] 2 KB 113; [1935] All ER Rep 456 - Jones v Dunkel (1959) [1959] HCA 8; 101 CLR 298 - Jones v Jones [2009] VSC 292 - JZ Lee Interiors Pty Ltd v Smith [2015] VSC 693 - Kenna & Brown Pty Ltd v Kenna [1999] NSWSC 533; (1999) 32 ACSR 430; 17 ACLC 1183 - Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; (2011) 243 CLR 361 - Lewis Securities Ltd (in liq) v Carter [2018] NSWCA 118; (2018) 355 ALR 703; 128 ACSR 120 - Loch v John Blackwood Ltd [1924] AC 783 - Love v ASC [2000] WASCA 404; (2000) 36 ACSR 363 - Manning v Cory [1974] WAR 60; (1974) CLC 40-140 - McCrohan v Harith [2010] NSWCA 67 - Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 - Morley v Australian Securities and Investments Commission (No 2) [2011] NSWCA 110; (2011) 83 ACSR 620 - MSPR Pty Ltd v Advanced Braking Technology Ltd [2013] NSWCA 416 - Munstermann v Rayward [2017] NSWSC 133 - NRMA v Parker (1986) 6 NSWLR 517; 11 ACLR 1; 4 ACLC 609 - Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170 - Netglory Pty Ltd v Caratti [2013] WASC 364 - Notaras v Waverley Council [2007] NSWCA 333 - Omnilab Media Pty Ltd v Digital Cinema Network Pty Ltd [2011] FCAFC 166; (2011) 285 ALR 63; 86 ACSR 674 - One.Tel Ltd (in liq) v Rich [2005] NSWSC 226; (2005) 190 FLR 443 ; 53 ACSR 623 - Pages Property Investments Pty Ltd v Boros [2019] NSWSC 1778 - Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 77 ALJR 768 - Primacy Underwriting Agency Pty Ltd v Kilborn [2007] NSWSC 158; (2007) 25 ACLC 160 - Queensland Independent Wholesalers Ltd v Coutts Townsville Pty Ltd [1989] 2 Qd R 40 - Queensland Press Ltd v Academy Investments No 3 Pty Ltd [1988] 2 Qd R 575; (1987) 11 ACLR 419; 5 ACLC 175 - Ramsay v BigTinCan Pty Ltd [2014] NSWCA 324; (2014) 101 ACSR 415 - Re Bicher & Son Pty Ltd [2020] NSWSC 711 - Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789; (2014) 101 ACSR 233 - Re Cumberland Holdings Ltd (1976) 1 ACLR 361 at 375; (1975-76) CLC 40-250 - Re FAL Healthy Beverages Pty Ltd [2017] NSWSC 476 - Re Global Advanced Metals Pty Ltd [2019] NSWSC 1804; (2019) 141 ACSR 222 - Re Hair Industrie Penrith Pty Ltd, Hair Industrie Merrylands Pty Ltd [2015] NSWSC 1578 - Re HIH Insurance Ltd and HIH Casualty and General Insurance Ltd; Australian Securities and Investments Commission (ASIC) v Adler [2002] NSWSC 171; (2002) 168 FLR 253; 41 ACSR 72 - Re Hillsea Pty Limited [2019] NSWSC 1152 - Re ICB Medical Distributors Pty Ltd [2018] NSWSC 1315 - Re JGS Investment Holdings Pty Ltd [2014] NSWSC 1532 - Re Lawrence Waterhouse Pty Ltd (in liq) [2011] NSWSC 964 - Re Motasea Pty Ltd [2014] NSWSC 69; (2014) 97 ACSR 589 - Re National Discounts Ltd (1951) 52 SR (NSW) 244; 69 WN (NSW) 115 - Re Pages Equipment Holdings Pty Ltd (admin apptd) [2020] NSWSC 959 - Re Pure Nature Sydney Pty Ltd [2018] NSWSC 914 - Re Swan Services Pty Ltd (in liq) [2016] NSWSC 1724 - Re Weedmans Ltd [1974] Qd R 377 - Re William Brooks & Co Ltd and Companies Act [1962] NSWR 142; (1961) 79 WN (NSW) 354 - Rose v Trend Designs Pty Ltd [2020] NSWSC 675 - Schindler Lifts Australia Pty Ltd v Debelak (1989) 89 ALR 275 - Sevilleja v Marex Financial Ltd [2020] UKSC 31 - Southern Cross Mine Management Pty Ltd v Ensham Resources Pty Ltd [2003] QSC 402; [2004] 2 Qd R 207; (2004) 22 ACLC 724 - State of New South Wales v Moss (2000) 54 NSWLR 536 - Strategic Communications Management Pty Ltd v Techfront Australia Pty Ltd [2020] NSWSC 847 - Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152 - Tomanovic v Global Mortgage Equity Corporation Pty Ltd [2011] NSWCA 104; (2011) 84 ACSR 121 - Troulis v Vamvoukakis [1998] NSWCA 237 - Uszok v Henley Properties (NSW) Pty Ltd [2007] NSWCA 31 - Van Reesema v Flavel (1992) 7 ACSR 225; 10 ACLC 291 - Vanguard Financial Planners Pty Ltd v Ale [2018] NSWSC 314 - V-Flow Pty Ltd v Holyoake Industries (Vic) Pty Ltd [2013] FCAFC 16; (2013) 296 ALR 418; 93 ACSR 76 - Vrisakis v Australian Securities Commission (1993) 9 WAR 395; 11 ACSR 162 - Waterman v Gerling Australia Insurance Company Pty Ltd [2005] NSWSC 1066; (2005) 65 NSWLR 300 - Wayde v New South Wales Rugby League Ltd [1985] HCA 68; (1985) 180 CLR 459 - Westpac Banking Corporation v The Bell Group Ltd (in liq) (No 3) [2012] WASCA 157; (2012) 44 WAR 1 Texts Cited: - Mason and Carter, Restitution Law in Australia (LexisNexis Butterworths, 2nd ed, 2008) Category: Principal judgment Parties: Pages Property Investments Pty Ltd (Plaintiff) Attila Boros (First Defendant) Pages Equipment Holdings Pty Ltd (prov liq apptd) (Second Defendant) Pages Sales Pty Ltd (prov liq apptd) (Fifth Defendant) Phire Pty Ltd (prov liq apptd) (Sixth Defendant) Pages Austructures Pty Ltd (Seventh Defendant) Representation: Counsel: M White/R Gration (Plaintiff)