In the matter of Hot Frog Pty Ltd [2022] NSWSC 6

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Hot Frog Pty Ltd [2022] NSWSC 6 Hearing dates: 24 and 25 November 2021; last submissions 9 December 2021. Decision date: 25 February 2022 Jurisdiction: Equity Before: Rees J Decision: Judgment for the plaintiff in the amount of $7,760.10; proceedings otherwise dismissed. Catchwords: CORPORATIONS — directors and officers — director accused of appropriating company's funds for personal use — no constitution – no board meetings – no minutes – few records – cash business – whether director authorised to expend funds without resolution of board, principles at [89] – onus of proof – serious allegation – Briginshaw – insufficient evidence – strict liability to account for unauthorised payment of home electricity bill. Legislation Cited: Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Cases Cited: A v New South Wales (2007) 230 CLR 500; [2007] HCA 10 Australian Competition and Consumer Commission v Metcash Trading Ltd (2011) 198 FCR 297; [2011] FCAFC 151 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345; [2012] HCA 17 BCI Finances Pty Ltd (In Liq) v Binetter (No 4) [2016] FCA 1351; (2016) 348 ALR 227 Bell Group Ltd (in liq) v Westpac Banking Corp (No 9) (2008) 225 FLR 1; [2008] WASC 239 Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) (2008) 39 WAR 1; [2008] WASC 239 Blatch v Archer (1774) 98 ER 969 Brick and Pipe Industries Ltd v Occidental Life Nominees Pty Ltd [1992] 2 VR 279; (1991) 6 ACSR 464 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 38 Carr v Baker (1936) 36 SR (NSW) 301 Caswell v Powell Duffryn Associated Collieries Ltd [1940] AC 152 Chew v The Queen (1992) 173 CLR 626 Crowe-Maxwell v Frost (2016) 91 NSWLR 414; [2016] NSWCA 46 Federovich v St Albans Pty Ltd [1999] NSWSC 506 Gerard Cassegrain & Co Pty Limited v Cassegrain [2013] NSWCA 453; 305 ALR 612 Great Investments Ltd v Warner (2016) 243 FCR 516; [2016] FCAFC 85 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 at [179] Horizon Star Pty Ltd v Carina Holdings Pty Ltd [2003] WASCA 94 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Howard Smith Ltd v Ampol Petroleum Ltd (1974) 48 ALJR 5 In the matter of Idylic Solutions Pty Ltd [2012] NSWSC 1276 In the matter of Ledir Enterprises Pty Ltd [2013] NSWSC 1332 In the matters of Earth Civil Australia Pty Ltd, RCG CBD Pty Ltd, Bluemine Pty Ltd, Diamondwish Pty Ltd and Rackforce Pty Ltd (all in liq) [2021] NSWSC 966 Jones v Great Western Railway Co (1930) 47 TLR 39 Neville v Lam (No 3) [2014] NSWSC 607 Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 146 Perkins v National Bank Ltd (1999) 30 ACSR 256; [1999] SASC 280 Poole v Chubb Insurance Company of Australia Ltd [2014] NSWSC 1832 Pope v Flinders Management Pty Ltd [2001] SASC 278 Re Wan Ze Property Development (Aust) Pty Ltd [2012] NSWSC 722 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134; [1942] 1 All ER 378 Residues Treatment and Trading Co Ltd v Southern Resources (No 2) (1989) 15 ACLR 770 Rockcote Enterprises Pty Ltd v FS Architects Pty Ltd [2008] NSWCA 39 Roden v International Gas Applications (1995) 18 ACSR 454 Seltsam Pty Ltd v McGuiness (2000) 49 NSWLR 262; [2000] NSWCA 29 Texts Cited: Ford, Austin & Ramsay's Principles of Corporations Law (LexisNexis Butterworths, as at December 2021) Category: Principal judgment Parties: Hot Frog Pty Ltd (Plaintiff) David Barker (Defendant) Representation: Counsel: Mr A Hopkins (Plaintiff) Mr C Dobbs (Defendant) Solicitors: Brander Smith McKnight Lawyers (Plaintiff) Robertson Saxton Osborne Lawyers (Defendant) File Number(s): 2020/267733