In the matter of Sirrah Pty Ltd (in prov liq) [2021] NSWSC 413

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Sirrah Pty Ltd (in prov liq) [2021] NSWSC 413 Hearing dates: 23, 25-26, 30-31 March, 1 April 2021 Date of orders: 23 April 2021 Decision date: 23 April 2021 Jurisdiction: Equity - Corporations List Before: Black J Decision: Judgment for the First Defendant, in derivative proceedings brought by the Plaintiffs on its behalf, in respect of certain claims. First Defendant to be wound up on the just and equitable ground. Parties afforded an opportunity to make further submissions as to proposed orders. Catchwords: PROCEDURE — Application to have hearing dates vacated — whether principles in ss 56–58 of the Civil Procedure Act 2005 (NSW) support the vacation of hearing dates. CORPORATIONS — Winding up on the just and equitable ground. CORPORATIONS — Directors and officers — Directors' duties — Duty of care and diligence — Duty to act in good faith in the best interests of company and for proper purpose — Director's involvement in transactions with companies he controls. EQUITY — Fiduciary duties — Conflict of interest and duty — Informed consent — Director's involvement in transactions with companies he controls. Legislation Cited: - Civil Procedure Act 2005 (NSW), ss 56, 57, 58 - Corporations Act 2001 (Cth), ss 180, 181, 182, 233, 259B, 259F, 461, 1305, 1317E, 1317H, 1317K, 1318 - Evidence Act 1995 (Cth), s 136 - Limitation Act 1969 (NSW), ss 14, 15, 48 - Personal Property Securities Act 2009 (Cth) Cases Cited: - Accurate Financial Consultants Pty Ltd v Koko Black Pty Ltd (2008) 66 ACSR 325; [2008] VSCA 86 - Adler v Australian Securities and Investments Commission (ASIC) (2003) 46 ACSR 504; [2003] NSWCA 131 - Australian Careers Institute Pty Ltd v Australian Institute of Fitness Pty Ltd (2016) 340 ALR 580; (2016) 116 ACSR 566; [2016] NSWCA 347 - Australian Securities and Investments Commission v Adler (2002) 41 ACSR 72; [2002] NSWSC 171 - Australian Securities and Investments Commission v Cassimatis (No 8) (2016) 336 ALR 209; [2016] FCA 1023 - Australian Securities and Investments Commission v Macdonald (No 11) (2009) 256 ALR 199; (2009) 71 ACSR 368; [2009] NSWSC 287 - Australian Securities and Investments Commission v Vines (2005) 55 ACSR 617; [2005] NSWSC 738 - Australian Worldwide Pty Ltd (In Liq) v AW Exports Pty Ltd [2019] NSWSC 1475 - Barnes v Addy (1874) LR 9 Ch App 244 - Bathurst City Council v PWC Properties Pty Ltd (1998) 195 CLR 566; [1998] HCA 59 - BCI Finances Pty Ltd (In Liq) v Binetter (No 4) (2016) 348 ALR 227; (2016) 117 ACSR 18; [2016] FCA 1351 - Betfair Pty Ltd v Racing New South Wales (2010) 189 FCR 356 - Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373; (1975) 5 ALR 231 - Coope v LCM Litigation Fund Pty Ltd (2016) 333 ALR 524; [2016] NSWCA 37 - Diamond Hill Mining Pty Ltd v Huang Jin Mining Pty Ltd (2011) 84 ACSR 616; [2011] VSC 288 - EC Dawson Investments Pty Ltd v Crystal Finance Pty Ltd (No 3) [2013] WASC 183 - Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 - Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672; [2001] NSWCA 97 - Giumelli v Giumelli (1999) 196 CLR 101; [1999] HCA 10 - Gordon in His Capacity as Liquidator of Lyon Form Pty Ltd (in liq) v Leon Plant Hire Pty Ltd (in liq) [2015] NSWSC 397 - Grimaldi Chameleon Mining NL (No 2) (2012) 87 ACSR 260; [2012] FCAFC 6 - Hancock Family Memorial Foundation Ltd v Porteous (2000) 22 WAR 198; [2000] WASCA 29 - Hans Pet Constructions Pty Ltd v Cassar [2009] NSWCA 230 - Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; (2014) 101 ACSR 167; [2014] NSWCA 266 - Hylepin Pty Ltd v Doshay Pty Ltd (2020) 148 ACSR 30; [2020] FCA 1370 - John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd; Walker Corp Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 - JR Consulting & Drafting Pty Ltd v Cummings (2016) 329 ALR 625; [2016] FCAFC 20 - Kalls Enterprises Pty Ltd (in liq) v Baloglow (2006) 58 ACSR 63; (2006) 24 ACLC 920; [2006] NSWSC 617 - Kalls Enterprises Pty Ltd (in liq) v Baloglow (2007) 63 ACSR 557; [2007] NSWCA 191 - KQ International Trading Pty Ltd v Yang [2016] VSC 146 - Lewis Securities Ltd (in Liq) v Carter (2017) 120 ACSR 327; [2017] NSWSC 412 - Linton v Telnet Pty Ltd (1999) 30 ACSR 465; [1999] NSWCA 33 - Morley v Australian Securities and Investments Commission (ASIC) (2010) 274 ALR 205; (2010) 247 FLR 140; (2010) 81 ACSR 285; [2010] NSWCA 331 - Nassar v Innovative Precasters Group Pty Ltd (2009) 71 ACSR 343; [2009] NSWSC 342 - One.Tel Ltd (in liq) v Rich [2005] NSWSC 226 - Parker v Tucker (2010) 77 ACSR 525; [2010] FCA 263 - Paul A Davies (Aust) Pty Ltd (in liq) v Davies (No 2) [1983] 1 NSWLR 440 - Primacy Underwriting Agency Pty Ltd v Kilborn (2007) 25 ACLC 160; [2007] NSWSC 158 - Ramsay v BigTinCan Pty Ltd (2014) 101 ACSR 415; [2014] NSWCA 324; BC201407664 - Re AJ Roberts Removals & Storage Pty Ltd [2017] NSWSC 1054 - Re Bluemine Pty Ltd (In Liq) [2019] NSWSC 1807 - Re Central Management (NSW) Pty Ltd (in liq) [2017] NSWSC 1258 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Re Elsmore Resources Ltd [2016] NSWSC 884 - Re FAL Healthy Beverages Pty Ltd and FAL Retail Pty Ltd [2017] NSWSC 476 - Re Felan's Fisheries Pty Ltd [2017] NSWSC 1502 - Re Kit Digital Australia Pty Ltd (in liq) [2014] NSWSC 1547 - Re Mudgee Dolomite & Lime Pty Ltd v Murdoch [2020] NSWSC 1510 - Re Pure Nature Sydney Pty Ltd [2018] NSWSC 914 - Shot One Pty Ltd (in liq) v Yeo in his capacity as liquidator of Shot One Pty Ltd (in liq) [2017] VSC 741 - Taxa Australia Pty Ltd v Wang (2018) 130 ACSR 531; [2018] NSWSC 1412 - Thomson v STX Pan Ocean Co Ltd [2012] FCAFC 15 - Twigg v Twigg (No 4); Lambert v Twigg Investments Pty Ltd (No 3) (2020) 147 ACSR 389; [2020] NSWSC 1159 - UBS AG v Tyne (2018) 265 CLR 77; (2018) 360 ALR 184; [2018] HCA 45 - Vrisakis v Australian Securities Commission (1993) 9 WAR 395; (1993) 11 ACSR 162 - Watson v Foxman (1995) 49 NSWLR 315 - Westpac Banking Corporation v Bell Group Ltd (in liq) (No 3) (2012) 44 WAR 1; (2012) 89 ACSR 1; [2012] WASCA 157 Category: Principal judgment Parties: Gregory Thomas Harris (First Plaintiff) Monica Mary Brown (Second Plaintiff) Sirrah Pty Limited (First Defendant) William Francis Harris (Second Defendant) Michelle Joy Harris (Third Defendant) Harris Health Care Pty Limited (Fourth Defendant) Representation: Counsel: S A Wells/J Anderson (Plaintiffs) J S Tobin (First Defendant) A F Fernon SC/E A Walker (Second - Fourth Defendants)