In the matter of Shield Mercantile Pty Ltd [2020] NSWSC 1545

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Shield Mercantile Pty Ltd [2020] NSWSC 1545 Hearing dates: 31 August 2020 Date of orders: 31 August 2020 Decision date: 31 August 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave granted pursuant to s 444GA of the Corporations Act to transfer Company shares. Order made pursuant to s 447A of the Corporations Act correcting error in DOCA. Plaintiffs to submit short minutes of order giving effect to judgment. Catchwords: CORPORATIONS — Voluntary administration — Deed of company arrangement – Application under s 444GA of the Corporations Act 2001 (Cth) for leave to transfer shares pursuant to DOCA – Whether shareholders unfairly prejudiced — Company plainly insolvent — No residual equity value — No evidence supporting Company having substantial claims against banks — Whether appropriate to stay winding up Legislation Cited: - Corporations Act 2001 (Cth), ss 444GA, 447A, Pt 5.3A Cases Cited: - Lewis, in the Matter of Diverse Barrel Solutions Pty Ltd (Subject to a Deed of Company Arrangement) [2014] FCA 53 - Re Statewide Office Furniture Pty Ltd [2018] NSWSC 1393 - Shield Mercantile v Citigroup [2013] NSWSC 117 - Ten Network Holdings Ltd [2017] NSWSC 1529 at [32]ff; (2017) 123 ACSR 253 Category: Principal judgment Parties: Shield Mercantile Pty Ltd (subject to deed of company arrangement) (First Plaintiff) Graeme Robert Beattie (in his capacity as deed administrator (Second Plaintiff) Simon John Cathro (in his capacity as deed administrator) (Third Plaintiff) Desmond Joseph Shields (First Defendant) AMPAC Debt Recovery Pty Ltd (Second Defendant) Dale Andrew Campbell (Third Defendant) Simon Prowse (Fourth Defendant) Gwen Prowse (Fifth Defendant) Representation: Counsel: Mr H Grace (Plaintiffs) Mr J T Johnson (Second – Fifth Defendants)