In the matter of Candy-Vend Pty Ltd [2020] NSWSC 1735

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Candy-Vend Pty Ltd [2020] NSWSC 1735 Hearing dates: 18 – 20 November 2020 Date of orders: 3 December 2020 Decision date: 03 December 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Originating Process and Cross-Claim dismissed. Parties to make submissions as to costs and as to whether parties should provide copy of judgment to Deputy Commissioner of Taxation. Catchwords: CORPORATIONS — Members' rights and remedies — Oppression — Family company's affairs conducted by father with sons as shareholders — History of payments from father's companies to sons — Whether particular payment characterised as loan — Whether Plaintiffs were excluded from participation in company's affairs — Whether oppressive for Defendants to file Cross-Claim to recover payment as debt — Whether winding up order appropriate — Whether buyout on basis sought by Plaintiffs appropriate Legislation Cited: - Conveyancing Act 1919 (NSW), s 66G - Corporations Act 2001 (Cth), ss 232, 233, 461(1)(k) - Evidence Act 1995 (NSW), ss 91, 136 - Income Tax Assessment Act 1997 (Cth), Div 7A Cases Cited: - Boyd v Feeney [2017] NSWSC 1595 - Byrne v A J Byrne Pty Ltd [2012] NSWSC 667 - County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 - Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672; [2001] NSWCA 97 - Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (No 2) [2008] FCA 810 - John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1 - MacLean v MacLean [2017] FCA 194 - Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 - Munstermann v Rayward [2017] NSWSC 133 - News Limited v Australian Rugby Football League Ltd (1996) 64 FCR 410; 21 ACSR 635 - Re AJ Roberts Removals & Storage Pty Ltd [2017] NSWSC 1054 - Re George Raymond Pty Ltd; Salter v Gilbertson (2000) 18 ACLC 85; [1999] VSC 460 - Re Ledir Enterprises Pty Ltd (2013) 96 ACSR 1; [2013] NSWSC 1332 - Re Lowes Park Pty Ltd; Headlam v Lowes Park Pty Ltd (1994) 62 FCR 535 - Re Rafic Pty Ltd [2017] NSWSC 1013 - Thomas v HW Thomas Ltd [1984] 1 NZLR 686; (1984) 2 ACLC 610 - Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152 - Tomanovic v Global Mortgage Equity Corporation Pty Ltd (2011) 288 ALR 310; 84 ACSR 121; [2011] NSWCA 104 - Tomanovic v Global Mortgage Equity Corporation Pty Ltd [2011] NSWCA 104 - Varma v Varma (2010) 6 ASTLR 152 ; [2010] NSWSC 786 - Victory Projects Pty Ltd v AAA Self Storage Pty Ltd [2016] NSWSC 1758 - Watson v Foxman (1995) 49 NSWLR 315 - Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459; [1985] HCA 68 Category: Principal judgment Parties: Joseph Essey (First Plaintiff) Johnnie Essey (Second Plaintiff/Cross-Defendant) Candy-Vend Pty Ltd (First Defendant/Cross-Claimant) Paul Essey (Second Defendant) Representation: Counsel: Mr J Hassett (Solicitor) (Plaintiffs/Cross-Defendant) Mr D Neggo (Defendants/Cross-Claimant)