In the matter of Carbon Copies Composites Pty Ltd [2022] NSWSC 1762

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Carbon Copies Composites Pty Ltd [2022] NSWSC 1762 Hearing dates: 2 December 2022 Date of orders: 2 December 2022 Decision date: 02 December 2022 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave to bring derivative proceedings granted; mandatory interlocutory injunctions in respect of certain property made; reserve the costs of the application. Catchwords: CORPORATIONS — Statutory derivative action — Application to bring proceedings on behalf of company — Where leave sought by officer or former officer of company — Where the plaintiff director is not an Australian resident and does not hold significant assets in Australia — Where an entity associated with the plaintiff provides the indemnity for the company's costs of the proceedings and any orders made against the company for costs or damages — Whether the indemnity is adequate and the application is in the company's best interests. EQUITY — Equitable remedies — Injunctions — Whether a mandatory injunction should be ordered on an interlocutory basis in respect of disputed property. Legislation Cited: Corporations Act 2001 (Cth), s 237 Cases Cited: - Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57; [2006] HCA 46 - Cassegrain v Gerard Cassegrain and Co Pty Ltd [2008] NSWSC 1159 - Redenbach v Legal Practice Management Group Pty Ltd (2018) 125 ACSR 513; [2018] NSWSC 527 - Re Imperium Projects Pty Ltd [2015] NSWSC 123 - Re Sunnya Pty Ltd (Supreme Court of New South Wales, Black J, 10 November 2022) Texts Cited: J D Heydon et al, Meagher, Gummow and Lehane's Equity, Doctrines and Remedies (LexisNexis, 5th ed, 2015) 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 (Plaintiffs) S Bell (Direct Brief) (Second Defendant)