In the matter of H&C Investment Holdings Pty Ltd [2024] NSWSC 580

Supreme Court New South Wales

Medium Neutral Citation: In the matter of H&C Investment Holdings Pty Ltd [2024] NSWSC 580 Hearing dates: 13-16 November 2023 Date of orders: 12 June 2024 Decision date: 12 June 2024 Jurisdiction: Equity - Corporations List Before: Williams J Decision: See [266]-[271]. Catchwords: EQUITY – Trusts – Accounting by trustee of unit trust to unit holders for profits generated by property development business carried on by trustee – Resolution of dispute about unit holders' respective financial contributions to the business CORPORATIONS — Members' rights and remedies — Oppression — Family company's affairs – Where business of company managed by one director – Whether agreement for payment of wages to that director – Whether conduct of the company's affairs oppressive within the meaning of s 232 of the Corporations Act 2001 (Cth), including by reason of payment of wages and superannuation to the director who managed the business Legislation Cited: Corporations Act 2001 (Cth) ss 181, 182, 232, 233, 237, 249D, 1317H, 1317J Evidence Act 1995 (NSW) s 63(1) Uniform Civil Procedure Rules 2005 (NSW) r 35.2 Cases Cited: Alexander v Perpetual Trustees WA Limited (2004) 216 CLR 109; [2004] HCA 7 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345; [2012] HCA 17 Campbell v Backoffice Investments Pty Ltd (2008) 66 ACSR 359; (2008) 26 ACLC 537; [2008] NSWCA 95 Exton v Extons Pty Ltd (2017) 53 VR 520; [2017] VSC 14 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672; [2001] NSWCA 97 Hungerford v Richardson [2018] NSWSC 1543 In the matter of Candy-Vend Pty Ltd [2020] NSWSC 1735 In the matter of H&C Investment Holdings Pty Ltd [2023] NSWSC 1387 In the matter of Ledir Enterprises Pty Ltd [2013] NSWSC 1332 In the matter of Tzavaras & Sons Pty Ltd [2022] NSWSC 359 Jones v Dunkel (1959) 101 CLR 298 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 LPD Holdings (Aus) Pty Ltd v Phillips (2013) 281 FLR 227; [2013] QSC 225 McMillan v Coolah Home Base Pty Ltd (No. 4) [2022] NSWSC 584 Munstermann v Rayward; Rayward v Munstermann [2017] NSWSC 133 Torlonia v Wright [2016] NSWSC 1139 Tzavaras v Tzavaras & Sons Pty Ltd [2023] NSWCA 168 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: J. D. Heydon, Cross on Evidence (14th ed, 2024, LexisNexis) J. D. Heydon and MJ Leeming, Jacobs Law of Trusts in Australia (8th ed, 2016, LexisNexis) Scott on Trusts (4th ed, 1989) Category: Principal judgment Parties: Steven Huang (First Plaintiff) Chun Huang (Second Plaintiff) S&C Investment Nominees Pty Ltd (Third Plaintiff) Huafa Development Pty Ltd (ABN 31 601 761 433) (Fourth Plaintiff) Qiao Sheng Huang (Fifth Plaintiff) Hosea Chan (First Defendant) Chan & Hui Investment Nominees Pty Ltd (Second Defendant) H & C Investment Holdings Pty Ltd ACN 147 329 860 (Third Defendant) Chun On Hui (Fourth Defendant) Representation: Counsel: Mr MK Condon SC with Mr N Kabilafkas (Plaintiffs) Mr PD Reynolds (First and Second Defendants)