In the matter of Carbon Copies Composites Pty Ltd [2022] NSWSC 1638

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Carbon Copies Composites Pty Ltd [2022] NSWSC 1638 Hearing dates: 24 November 2022 Date of orders: 24 November 2022 Decision date: 24 November 2022 Jurisdiction: Equity - Corporations List Before: Black J Decision: Proceedings stood over and associated directions made. Catchwords: CORPORATIONS — Statutory derivative action — Application to bring proceedings on behalf of company — Where leave is sought by a member and former director — Where the applicant does not reside in Australia or hold assets in Australia but another company offers an indemnity in his favour— Whether leave to bring derivative action should be granted — Whether the indemnity provided by the applicant is sufficient Legislation Cited: Corporations Act 2001 (Cth), ss 236, 237 Cases Cited: - Huang v Wang [2016] NSWCA 164 - Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 - Kuhl v Zurich Financial Services Ltd (2011) 243 CLR 361; [2011] HCA 11 - Musa v Alzreaiawi [2021] NSWCA 12 - Power v Ekstein (2010) 77 ACSR 302; [2010] NSWSC 137 - Re Australian International Yacht Club Ltd [2020] NSWSC 1884 - Re Fishinthenet Investments Pty Ltd [2019] NSWSC 490 - Re Kalimpa Park Pty Ltd [2021] VSC 654 - Re Sundara Pty Ltd [2015] NSWSC 1694 - Swansson v RA Pratt Properties Pty Ltd (2002) 42 ACSR 313; [2002] NSWSC 583 - The App Shop Pty Ltd v Jalal Brothers Pty Ltd [2019] NSWSC 490 Category: Principal judgment Parties: Vaughan Stanley Wellington (in his capacity as director of Carbon Copies Composites Pty Ltd) (recs and mgrs apptd) (First Plaintiff) Vaughan Stanley Wellington (Second Plaintiff) Darren John Vardy (in his capacity as receiver and manager of Carbon Copies Composites Pty Ltd (First Defendant) Colin James Hutchison (Second Defendant) Representation: Counsel: A J Bulley/J Brook (First and Second Plaintiffs) S Bell (direct brief) (Second Defendant)