In the matter of Heartland Group Pty Limited and others [2024] NSWSC 875

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Heartland Group Pty Limited and others [2024] NSWSC 875 Hearing dates: 4-5 July 2024 Date of orders: 19 July 2024 Decision date: 19 July 2024 Jurisdiction: Equity - Corporations List Before: Black J Decision: Parties to bring in short minutes of order to give effect to this judgment, including as to costs, within five business days and, if there is no agreement between them, their respective draft orders and submissions as to the differences between them. Catchwords: CORPORATIONS – Directors and officers – Appointment, removal and retirement of directors – Whether director was validly appointed – Where director purported to exercise casting vote of board chairperson to effect appointment of another director. CORPORATIONS – Whether share held by subsidiary in holding company could be voted – Application of exception for shares held in trust. CORPORATIONS – Whether relief should be granted under s 1322 of the Corporations Act 2001 (Cth) to validate members' resolutions – Where member excluded from voting on resolution purportedly passed by written resolution executed by majority shareholder. Legislation Cited: - Corporations Act 2001 (Cth), ss 249S, 259C-259D, 1322 - Evidence Act 1995 (NSW), s 136 Cases Cited: - Armagas Ltd v Mundogas SA [1985] 1 Ll R 1 - Australian Hydocarbons NL v Green (1985) 10 ACLR 72 - Australian Karting Association Ltd v Karting (NSW) Inc [2021] NSWSC 1075 - Camenzuli v Hawke [2022] NSWSC 168 - Clark v Workman [1920] 1 IR 107 - Commissioner of State Revenue v Serana Pty Ltd (2008) 36 WAR 251; [2008] WASCA 82 - Cordiant Communications (Australia) Pty Ltd v Communications Group Holdings Pty Ltd (2005) 194 FLR 322; (2005) 55 ACSR 185; [2005] NSWSC 1005 - Cypjayne Pty Ltd v Sverre Rodskog [2009] NSWSC 301 - ET-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24 - Fischer v Nemeske Pty Ltd (2016) 257 CLR 615; [2016] HCA 11 - Gosford Christian School Ltd v Totonjian (2006) 201 FLR 424; [2006] NSWSC 725 - Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (No 2) [2008] FCA 810 - Inland Revenue Commissioner (NZ) v Ward [1970] NZLR 1 - John Holland Pty Ltd v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451 - MSP Nominees Pty Ltd v Commissioner of Stamps (SA) (1999) 198 CLR 494; [1999] HCA 51 - MYT Engineering Pty Ltd v Mulcon Pty Ltd (1999) 195 CLR 636; (1999) 25 ACSR 78; [1999] HCA 24 - New South Wales Rugby League Ltd v Australian Rugby Football League Ltd (1999) 30 ACSR 354; [1999] NSWCA 9 - No 1 Victoria Dragons Pty Ltd v AEN Developments Pty Ltd [2022] NSWSC 1345 - Primary Securities Ltd v Aurora Funds Management Ltd [2020] NSWCA 230 - Re Atlas Advisors Australia Pty Ltd (2022) 162 ACSR 509; [2022] NSWSC 705 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Re Consolidated Nickel Mines Ltd [1914] 1 Ch 883 - Re iCandy Interactive Ltd (2018) 125 ACSR 369; [2018] FCA 533 - Re National Australia Bank Ltd (2020) 149 ACSR 323; [2020] NSWSC 1761 - Re Pacific Springs Pty Ltd (2020) 148 ACSR 454; [2020] NSWSC 1240 - Re Vestey's Settlement [1951] Ch 209 - Singh v Singh; Flora t/as Flora Constructions v Budget Demolition & Excavation Pty Ltd [2008] NSWSC 386 - The Chinese Cultural Club Ltd (2004) (2004) 83 FLR 33; 49 ACSR 568; [2004] NSWSC 432 - Varma v Varma [2010] NSWSC 786 - Ventouris Enterprises Pty Ltd v Dib Group Pty Ltd [2010] NSWSC 963 - Watson v Foxman (1995) 49 NSWLR 315 - Weinstock v Beck (2013) 251 CLR 396; [2013] HCA 14 Category: Procedural rulings Parties: Joanne Richards (First Plaintiff) Bernice Hooker (Second Plaintiff) Kieran Turner (First Defendant) Bernley Corporation Pty Ltd (Second Defendant) Heartland Group Pty Ltd (Third Defendant) Boyded Industries Pty Ltd (Fourth Defendant) HMG Parts Pty Ltd (Fifth Defendant) Heartland Motors Pty Ltd (Sixth Defendant) Heartland Blacktown Pty Ltd (Seventh Defendant) Heartland Penrith Pty Ltd (Eighth Defendant) Chicago Properties Pty Ltd (Ninth Defendant) T S Management Pty Ltd (Tenth Defendant) BGW Nominees Pty Ltd (Eleventh Defendant) Rossfield Nominees (A.C.T.) Pty Ltd (Twelfth Defendant) Australian Securities and Investments Commission (Thirteenth Defendant) Anthony Turner (Fourteenth Defendant) Representation: Counsel: R A Dick SC/A Langshaw (Plaintiffs) M Izzo SC/T Boyle (First Defendant)