In the matter of Bryve Resources Pty Ltd [2022] NSWSC 647

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bryve Resources Pty Ltd [2022] NSWSC 647 Hearing dates: 4 June 2021 Date of orders: 23 May 2022 Decision date: 23 May 2022 Jurisdiction: Equity - Corporations List Before: Williams J Decision: See paragraph [105] Catchwords: CORPORATIONS – directors and officers – breach of duties under ss 180 and 181 of the Corporations Act 2001 (Cth) by making unsecured interest-free loan to foreign company associated with director with doubtful capacity to repay loan CORPORATIONS – voidable transactions – payments to or for the benefit of director in circumstances where company is presumed insolvent – director was a creditor of the company but payments prejudiced company's ability to pay other creditors – whether unreasonable director-related transactions within the meaning of s 588FDA of the Corporations Act 2001 (Cth) Legislation Cited: Corporations Act 2001 (Cth), ss 180, 181, 286, 588FDA, 588E, 588FE, 588FF Cases Cited: Australian Securities and Investments Commission v Rich (2005) 216 ALR 320; (2005) 191 FLR 385; (2005) 53 ACSR 752; (2005) 23 ACLC 838; [2005] NSWSC 417 Australian Securities and Investments Commission v Rich (2009) 75 ACSR 1; [2009] NSWSC 1229 Boros v Pages Property Investments Pty Ltd (2021) 395 ALR 756; [2021] NSWCA 288 Crowe-Maxwell v Frost (2016) 91 NSWLR 414; [2016] NSWCA 46 Hart Security Australia Pty Ltd v Boucousis (2016) 339 ALR 659; 117 ACSR 408; [2016] NSWCA 307 Livingspring Pty Ltd v Kliger Partners (2008) 20 VR 377; [2008] VSCA 93 Public Trustee v Smith [2008] NSWSC 397 Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 Re IW4U Pty Ltd (in liq) (2021) 150 ACSR 146; [2021] NSWSC 40 Re Substance Technologies Pty Ltd [2019] NSWSC 612 Stanton (WA) Pty Ltd (in liq) v Vasquez Investments Pty Ltd (No. 2) [2017] NSWSC 256 Weaver v Harburn (2014) 103 ACSR 416 Woodgate v Fawcett (2008) 67 ACSR 611; [2008] NSWSC 868 Texts Cited: D Ong, Trusts Law in Australia (5th ed, 2018, The Federation Press) Category: Principal judgment Parties: Timothy Cook in his capacity as liquidator of Bryve Resources Pty Ltd (in liq) (First Plaintiff) Byrve Resources Pty Ltd (In liq) (Second Plaintiff) Mr Brent Scott Stanton (First Defendant) Qube Logistics Services (Pty) Limited (a company registered in Namibia, Registration number 2014/0801) Representation: Counsel: Mr D Krochmalik (Plaintiffs) N/A (Defendant)