WAM Active Limited v Keybridge Capital Limited (No 2) [2024] NSWSC 1496

Supreme Court New South Wales

Medium Neutral Citation: WAM Active Limited v Keybridge Capital Limited (No 2) [2024] NSWSC 1496 Hearing dates: 11-13 November 2024 Date of orders: 27 November 2024 Decision date: 27 November 2024 Jurisdiction: Equity - Corporations List Before: Nixon J Decision: (1) The parties are to bring in short minutes of order, by 5pm on 4 December 2024, to give effect to these reasons for judgment. (2) If orders cannot be agreed, the parties are to exchange and provide to the Associate to Nixon J, by 5pm on 4 December 2024, the form of orders which each party proposes and submissions (limited to 5 pages) on those orders, indicating whether, and if so why, an oral hearing is requested to deal with the issues in dispute. (3) In the event that a party requests an oral hearing to deal with the issues in dispute, the matter will be listed for a hearing in respect of such issues at 9.15am on 11 December 2024, or at such other time as may be arranged with the Associate to Nixon J. Catchwords: CORPORATIONS – application to wind up in insolvency – where failure to comply with statutory demand after dismissal of application to set it aside – presumption of insolvency – where expert evidence led regarding solvency – presumption rebutted CORPORATIONS – application to bring derivative action – where company agreed to pay substantial sum to managing director following successful completion of a trade of securities, contingent on his entry into a standstill agreement and following completion of two-year standstill period – where company advanced the amount of the prospective payment to a foreign company owned by the managing director by way of an unsecured and undocumented loan – grant of leave to bring derivative suit not opposed – conditions for grant of leave established CORPORATIONS – application to wind up on just and equitable ground or alternatively by reason of oppressive conduct – where company is solvent and profitable – whether grant of leave to bring derivative suit is sufficient remedy – whether ongoing risk of mismanagement and of dissipation of assets – winding up application rejected Legislation Cited: Corporations Act 2001 (Cth), ss 95A, 232, 233, 236, 237, 250V, 250W, 459A, 459C, 459F, 459P, 461 Cases Cited: Ananda Marga Pracaraka Samgha Ltd v Tomas (No 6) [2013] FCA 284 Anchorage Capital Master Offshore Ltd v Sparkes (2023) 111 NSWLR 304; [2023] NSWCA 88 Asia Pacific Joint Mining Pty Ltd v Allways Resources Holdings Pty Ltd [2018] 3 Qd R 520; [2018] QCA 048 Australian Beverage Distributors Pty Ltd v Redrock Co Pty Ltd [2007] NSWSC 966 Australian Institute of Fitness Pty Ltd v Australian Institute of Fitness (Vic/Tas) Pty Ltd (No 3) [2015] NSWSC 1639 Australian Securities and Investments Commission v ABC Fund Managers (2001) 39 ACSR 443; [2001] VSC 383 Australian Securities and Investments Commission v Activesuper Pty Ltd (No 2) [2013] FCA 234 Australian Securities and Investments Commission v Edwards (2005) 220 ALR 148; [2005] NSWSC 831 Australian Securities and Investments Commission v Gognos Holdings Ltd [2017] QSC 207 Australian Securities and Investments Commission v Lanepoint Enterprises Pty Limited (2011) 244 CLR 1; [2011] HCA 18 Australian Securities and Investments Commission v Plymin (No 1) [2003] VSC 123 Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd [2005] NSWSC 397 Bzezinski v Shaw [2022] VSCA 173 Campbell v Backoffice Investments Pty Ltd (2008) 66 ACSR 359; [2008] NSWCA 95 Chan v First Strategic Development Corporation Ltd (in liq) [2015] QCA 28 Commonwealth Bank of Australia v Begonia Pty Ltd (1993) 11 ACLC 1075 David Grant & Co Pty Ltd (rec apptd) v Westpac Banking Corporation (1995) 184 CLR 265; [1995] HCA 43 Donaldson v Natural Springs Australia Limited [2015] FCA 498 Dwyer and Davies v Chicago Bot Co Pty Ltd [2011] SASC 27 Edwards v Australian Securities and Investments Commission (2009) 264 ALR 723; [2009] NSWCA 424 Expile Pty Ltd v Jabb's Excavations Pty Ltd (2003) 45 ACSR 711; [2003] NSWCA 163 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688; [1998] NSWSC 413 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672; [2001] NSWCA 97 Gerard Cassegrain & Co Pty Ltd v Cassegrain [2011] NSWSC 1156 Goozee v Graphic World Group Holdings Pty Ltd [2002] NSWSC 640 Hillam v Ample Source International (No 2) (2012) 202 FCR 336; 289 ALR 192; [2012] FCAFC 73 Hislop v Paltar Petroleum Ltd (No 3) [2017] FCA 1253 In the matter of Gladstone Pacific Nickel Limited [2011] NSWSC 1235 In the matter of Keybridge Capital Limited [2020] NSWSC 1917 Kelly v J Stockwell & Co Pty Ltd [2007] NSWSC 214 Keybridge Capital Ltd v WAM Active Ltd [2021] NSWCA 203 Kokotovich Constructions Pty Ltd v Wallington (1995) 17 ACSR 478; [1995] NSWSC 54 L & D Acoustics Pty Ltd v Pioneer Electronics Australia Pty Ltd (1982) 1 ACLC 536 Lewis (as liquidator of Doran Constructions Pty Limited) v Doran (2005) 54 ACSR 410; [2005] NSWCA 243 Li v Ye [2024] NSWSC 1176 Loch v John Blackwood Ltd [1924] AC 783 Munstermann v Rayward; Rayward v Munstermann [2017] NSWSC 133 Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266; [1996] HCA 21 Queensland Phosphate Pty Ltd v Korda [No 2] [2019] VSCA 215 Re Bideena Pty Ltd atf the Bideena Pty Ltd Superannuation Fund [2016] NSWSC 735 Re Catombal Investments Pty Ltd [2012] NSWSC 775 Re CNPR Limited [2018] NSWSC 989 Re Custom Bus Australia Pty Ltd (in liq) [2021] NSWSC 1036 Re Etna Developments Pty Ltd [2023] NSWSC 1239 Re Pure Nature Sydney Pty Ltd [2018] NSWSC 914 Re New View Windows Pty Ltd [2020] NSWSC 1905 Re Tweed Garages Ltd [1962] Ch 406 Re Wetherill Park Holdings Pty Ltd [2021] NSWSC 282 RHG Mortgage Ltd v Ianni [2015] NSWCA 56 Sarina; Ex parte Wollondilly Shire Council (1980) 32 ALR 596; [1980] FCA 138 Shakespeares Pie Co Australia Ltd v Multipye Pty Ltd [2005] NSWSC 1338 Southern Cross Interiors Pty Limited v Deputy Commissioner of Taxation (2001) 39 ACSR 305; [2001] NSWSC 621 Sutherland as Joint Liquidators of Australian Coal Technology Pty Ltd v Hanson Construction Materials Pty Ltd (2009) 254 ALR 650; [2009] NSWSC 232 Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583 Tomanovic v Argyle HQ Pty Ltd; Tomanovic v Global Mortgage Equity Corp Pty Ltd; Sayer v Tomanovic [2010] NSWSC 152 Treloar Constructions Pty Ltd v McMillan [2017] NSWCA 72 Tzavaras v Tzavaras & Sons Pty Ltd [2023] NSWCA 168 Williams v Spautz (1992) 174 CLR 509; [1992] HCA 34 Category: Principal judgment Parties: WAM Active Limited (Plaintiff) Keybridge Capital Limited (First Defendant) Nicholas Francis John Bolton (Second Defendant) Lowe Lippman Pty Ltd (First Supporting Creditor) Kerrs Law (Second Supporting Creditor) Representation: Counsel: MR Pesman SC w D Krochmalik (Plaintiff) F Assaf SC w A Gandar (First Defendant) S Cromb (First Supporting Creditor) L Tindal (Solicitor) (Second Supporting Creditor)