In the matter of Computer Room Solutions Pty Limited [2021] NSWSC 845

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Computer Room Solutions Pty Limited [2021] NSWSC 845 Hearing dates: 30 June 2021, 1 July 2021 Date of orders: 13 July 2021 Decision date: 13 July 2021 Jurisdiction: Equity - Corporations List Before: Black J Decision: Parties to bring in short minutes of order to give effect to decision. Catchwords: CONTRACTS — Construction and interpretation — Construction of shareholders deed — Where disposal to non-affiliate company permitted with consent of other shareholders — Question as to degree of knowledge required for implied consent — Consent by conduct — Where conduct included assenting to resolutions; execution of resolutions; execution of share certificates. CONTRACTS — Construction and interpretation — Whether shareholder company can waive certain requirements under shareholders deed in respect of itself — Where waiver allows company to avoid consequences of specified events. CONTRACTS — Implied terms — Shareholders deed — Implied term that compulsory transfer notice must be issued within reasonable time. CONTRACTS — Election — Whether sufficient knowledge of breach of shareholders deed for doctrine of election to operate. EQUITY — Equitable remedies — Relief against penalties — Where shareholders deed provided for transfer of shares at cost on happening of certain events — Where such acquisition to occur at cost price rather than market value. CORPORATIONS — Members' rights and remedies — Oppression — Whether exercise of rights in respect of transfer under shareholders deed is oppressive in the relevant circumstances Legislation Cited: - Corporations Act 2001 (Cth), 232, 233 Cases Cited: - Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205; (2012) 290 ALR 595; [2012] HCA 30 - Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36 - Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd Combined Projects (Arncliffe) Pty Ltd [2020] NSWSC 1778 - Cavendish Square Holding BV v Makdessi; ParkingEye Ltd v Beavis [2016] AC 1172; [2015] 3 WLR 1373; [2015] UKSC 67 - Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 - Elder's Trustee & Executor Co Ltd v Commonwealth Homes & Investment Co Ltd (1941) 65 CLR 603 - Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; (2014) 306 ALR 25; [2014] HCA 7 - Ex parte Ford; In re Caughey (1876) 1 Ch D 521 - Gambotto v WCP Ltd (1995) 182 CLR 432; (1995) 16 ACSR 1; [1995] HCA 12 - Legione v Hateley (1983) 152 CLR 406; [1983] HCA 11 - Liggins v Park Trent Properties Group Pty Ltd [2020] NSWSC 1113 - Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 - Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; (2015) 325 ALR 188; [2015] HCA 37 - Munstermann v Rayward [2017] NSWSC 133 - Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525; [2016] HCA 28 - Price v Spoor [2021] HCA 20 - Questband Pty Ltd v Macquarie Bank Ltd [2009] QSC 007 - Questband Pty Ltd v Macquarie Bank Ltd [2009] QCA 266 - Re Leslie Muir Holdings Pty Ltd [2019] NSWSC 1519 - Re New Seabay Kitchen Pty Ltd [2019] NSWSC 1904; BC201912366 - Ringrow Pty Ltd v BP Australia Pty Ltd [2005] HCA 71 - Rudi's Enterprises Pty Ltd v Jay (1987) 10 NSWLR 568 - Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 - Sargent v ASL Developments Ltd (1974) 131 CLR 634; (1974) 4 ALR 257; (1974) 48 ALJR 410; [1974] HCA 40 - Scammell (G) & Nephew Ltd v H C & T G Ouston [1941] AC 251 - Toll (FGCT) Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165; [2004] HCA 52 - Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152 - Tomanovic v Global Mortgage Equity Corp Pty Ltd (2011) 288 ALR 310; (2011) 84 ACSR 121; [2011] NSWCA 104 - Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459; [1985] HCA 68 - Wiltrading (WA) Pty Ltd v Lumley General Insurance Ltd (2005) 30 WAR 290; [2005] WASCA 106 - Wollondilly Shire Council V Picton Power Lines Pty Ltd (1994) 33 NSWLR 551 - York Air Conditioning & Refrigeration (A/sia) Pty Ltd v Commonwealth (1949) 80 CLR 11 Texts Cited: - P W Young, The Law of Consent, (1986, The Law Book Company) - C Sappideen & P Vines, Fleming's The Law of Torts, (10th Ed, 2011, Thomson Reuters) Category: Principal judgment Parties: Sanbru Pty Ltd (First Plaintiff) Sanbru Pte Ltd (Second Plaintiff) Santosh Devaraj (Third Plaintiff) Computer Room Solutions Pty Ltd (First Defendant) Brendan John Dessent (Second Defendant) Margaret Tracy Dessent (Third Defendant) TGD Nominees Pty Ltd (Fourth Defendant) Representation: Counsel: J Giles SC, S Hartford-Davis (Plaintiffs) M Ashhurst SC, D Meyerowitz-Katz (Defendants)