Mount Gilead Pty Ltd & Hobhouse v L Macarthur-Onslow & Ors [2021] NSWSC 948

Supreme Court New South Wales

Medium Neutral Citation: Mount Gilead Pty Ltd & Hobhouse v L Macarthur-Onslow & Ors [2021] NSWSC 948 Hearing dates: 16 July 2021 Decision date: 02 August 2021 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave not to be granted to plaintiff to bring proceedings on behalf of Mount Gilead Pty Ltd under s 237 of the Corporations Act 2001 (Cth) and proceedings to be dismissed. Parties to bring in short minutes of order. Catchwords: CORPORATIONS — Statutory derivative action — Application to bring proceedings on behalf of company — Where leave sought by officer or former officer of company — Whether leave should be granted to commence proceedings on behalf of company — Whether in best interests of the company that leave be granted — Whether proposed proceedings involve a serious question to be tried. Legislation Cited: - Corporations Act 2001 (Cth), ss 236, 237, 1317H - Evidence Act 1995 (NSW), s 136 Cases Cited: - Awad v Health Care Complaints Commission [2006] NSWSC 698 - Badenach v Calvert (2016) 257 CLR 440; (2016) 331 ALR 48; [2016] HCA 18 - Bray v F Hoffman-La Roche Ltd (2003) 130 FCR 317; (2003) 200 ALR 607; [2003] FCAFC 153 - Chahwan v Euphoric Pty Ltd (2008) 245 ALR 780; (2008) 227 FLR 43; (2008) 65 ACSR 661; (2008) 26 ACLC 262; [2008] NSWCA 52 - Charlton v Baber (2003) 47 ACSR 31; [2003] NSWSC 745 - Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; (1991) 104 ALR 1; [1991] HCA 54 - Florgale Uniforms Pty Ltd v Orders (2004) 11 VR 54; (2004) 51 ACSR 699; [2004] VSC 65 - Gerard Cassegrain and Co Pty Ltd v Cassegrain [2010] NSWSC 91 - Goozee v Graphic World Group Holdings Pty Ltd (2002) 42 ACSR 534; [2002] NSWSC 640 Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112 - Hill v Compass Ten Pty Ltd (2012) 205 FCR 94; [2012] FCA 761 - Huang v Wang (2016) 114 ACSR 586; [2016] NSWCA 164 - Keyrate Pty Ltd v Hamarc Pty Ltd (2001) 38 ACSR 396; [2001] NSWSC 491 - Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - Malec v JC Hutton Pty Ltd (1990) 169 CLR 638; (1990) 92 ALR 545; [1990] HCA 20 - Mathews Capital Partners Pty Ltd v Coal of Queensland Holdings Ltd [2012] NSWSC 462 - MG Corrosion Consultants Pty Ltd v Vinciguerra (2011) 82 ACSR 367; [2011] FCAFC 31 - Oates v Consolidated Capital Services Ltd (2009) 76 NSWLR 69; (2009) 257 ALR 558; (2009) 72 ACSR 506; [2009] NSWCA 183 - Power v Ekstein (2010) 77 ACSR 302; [2010] NSWSC 137 - Re Australasian Barrister Chambers Pty Ltd (in liq) [2017] NSWCA 117 - Re Australasian Barrister Chambers Pty Ltd (in liq) [2017] NSWSC 597 - Re Gladstone Pacific Nickel Ltd (2011) 86 ACSR 432; [2011] NSWSC 1235 - Re Global Advanced Metals Pty Ltd (2019) 141 ACSR 222; [2019] NSWSC 1804 - Re Imperium Projects Pty Limited [2015] NSWSC 16 Re Legal Practice Management Group Pty Ltd [2017] NSWSC 1500 - Re Legal Practice Management Group Pty Ltd (2018) 125 ACSR 513; [2018] NSWSC 527 - Re Lotus Property Fund No 8 Pty Ltd [2020] NSWSC 1349 - Re Rus Holdings (Australia) Pty Ltd [2012] NSWSC 1075 - Re Sirrah Pty Ltd [2018] NSWSC 1802 - Segelov v Ernst & Young Services Pty Ltd (2015) 89 NSWLR 431; [2015] NSWCA 156 - Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; (1994) 120 ALR 16; [1994] HCA 4 - South Johnstone Mill Ltd v Dennis (2007) 244 ALR 730; (2007) 64 ACSR 447; [2007] FCA 1448 - Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313; (2002) 20 ACLC 1594; [2002] NSWSC 583 - Swerus v Central Mortgage Registry of Australia Pty Ltd [1989] ANZ ConvR 169; (1988) NSW ConvR 55-407 - The App Shop Pty Ltd v Jalal Bros Pty Ltd [2019] NSWSC 490 - Vasiliou v Westpac Banking Corp (2007) 19 VR 229; [2007] VSCA 113 - Vinciguerra v MG Corrosion Consultants Pty Ltd (2010) 79 ACSR 293; [2010] FCA 763 Category: Principal judgment Parties: Mount Gilead Pty Ltd (First Plaintiff/Second Cross-Defendant) Katrina Julia Denzil Hobhouse (Second Plaintiff/First Cross-Defendant) Lee Macarthur-Onslow (First Defendant/Cross-Claimant) Andrew William Martin (Second Defendant) Old Mill Properties Pty Ltd (Third Defendant) Jones Lang LaSalle (NSW) Pty Ltd (Fourth Defendant) Representation: Counsel: Dr R Higgins SC/G Ng (Second Plaintiff/First Cross-Defendant) D Studdy SC/J Brezniak (First Defendant/Cross-Claimant) A Horvath/K Sharma (Second Defendant) I R Pike SC/J Dooley (Third Defendant) S Mirzabegian (Fourth Defendant)