NAB Ltd & Ors v Market Holdings Pty Ltd (In liq) & Ors [2001] NSWSC 253

Reported Decision : (2001) 37 ACSR 629 (2001) 19 ACLC 710

New South Wales Supreme Court

CITATION : NAB Ltd & Ors v Market Holdings Pty Ltd (In liq) & Ors [2001] NSWSC 253 CURRENT JURISDICTION: Equity Division Corporations List FILE NUMBER(S) : SC 4964/2000 HEARING DATE(S) : 22 and 23 February 2001 JUDGMENT DATE : 9 April 2001

National Australia Bank Ltd (P1) National Markets Group Ltd (P2) National Australia Financial Management Ltd (P3) Australian Market Automated Quotation (Ausmaq) System Ltd (P4) Glenn L L Barnes (P5) Francis J Cicutto (P6) David M Krasnostein (P7) PARTIES : Kevin F Courtney (P8) Russell A McKimm (P9) Donald Argus (P10) Market Holdings Pty Ltd (In liquidation)(D1) John Sheahan (D2) Idoport Pty Ltd (D3) Investors Buying Service (IBS) Pty Ltd (D4) John Malcolm Maconochie (D5) JUDGMENT OF : Young J

J T Gleeson SC and R A Dick (P) COUNSEL : S Finch SC and L V Gyles (D2) N C Hutley SC, M Dicker and W V McManus (D3-5) Freehills (P) SOLICITORS : Piper Alderman (D2) Withnell Hetherington (D3-5) CATCHWORDS : CORPORATIONS [134]- Proxies- Joint debt- Whether each creditor can nominate separate proxy. CORPORATIONS [238][259]- Creditors voluntary winding up- Appointment of chairman- How determined. CORPORATIONS [337]- Validation- Substantial injustice- Factors involved. MEETINGS [7]- Chairman- How appointed. WORDS & PHRASES- "Convene". Corporations Law, ss 9, 477, 495, 497, 503, 532, 1322 LEGISLATION CITED : Corporations Law Regulations 1990, Regulations 5.6.17(2), 5.6.19(1), 5.6.20, 5.6.21(2), 5.6.28, 5.6.29 Maintenance & Champerty Abolition Act 1993, ss 4 and 6 Advance Housing Pty Ltd (in liq) v Newcastle Classic Developments Pty Ltd (1994) 14 ACSR 230 Alcatel Australia Ltd v PRB Holdings Pty Ltd (1988) 27 ACSR 708 Associated Theatres Inc v Wade 487 F (2d) 1221, 1222 (Tex CA) (1973) Australian Broadcasting Tribunal v Saatchi & Saatchi Compton (Vic) Pty Ltd (1985) 60 ALR 756 Australian Mid-Eastern Club Ltd v Yassim (1989) 1 ACSR 399 AWU v Bowen (1946) 72 CLR 575 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Blumberg v Life Interests and Reversionary Securities Corp [1897] 1 Ch 171 British Russian Gazette and Trade Outlook Ltd v Associated Newspapers Ltd [1933] 2 KB 616 Cachia v Hanes (1994) 179 CLR 403 Chevron Furnishers Pty Ltd; QAI v Harris (1993) 12 ACSR 565 Citrix Systems Inc v Telesystems Learning Ltd (in liq) (1998) 28 ACSR 529 City & Suburban Pty Ltd v Smith (1998) 28 ACSR 328 Colorado Construction Pty Ltd v Platus [1966] 2 NSWR 598 Commissioner of Stamps v Frost (1926) 28 WALR 81 Cornwall v Woods (1846) 4 Notes of Cases 555 Davys v Richardson (1888) 21 QBD 202 Dickason v Edwards (1910) 10 CLR 243 Duffy v Super Centre Development Corp Ltd [1967] 1 NSWR 382 Ebner v Official Trustee in Bankruptcy (2000) 75 ALJR 277 Eccles v Bryant [1948] Ch 93 Elfic Limited v Macks [2000] QSC 18 Ex p Ruffle; In re Dummelow (1873) LR 8 Ch App 997 George v Cluning (1979) 28 ALR 57 Greenwood v Sutcliffe [1892] 1 Ch 1 In re Peters; Ex Parte Lloyd (1882) 47 LT 64 John Laing Construction Ltd v Dastur [1987] 3 All ER 247 Johns v ASC (1992) 178 CLR 408 Kelly v Wolstenholme (1991) 4 ACSR 709 Leon v York-O-Matic Ltd [1966] 1 WLR 1450 Link Agricultural Pty Ltd v Shanahan (1998) 28 ACSR 498 Magic Menu Systems Pty Ltd v AFA Facilitation Pty Ltd (1997) 72 FCR 261 McGellin v Mount King Mining NL (1998) 144 FLR 288 National Australia Bank Ltd v Market Holdings Pty Ltd (2000) 35 ACSR 572; 18 ACLC 844 National Dwelling Society v Sykes [1894] 3 Ch 159 NEC Information Systems Australia Pty Limited v Lockhart (1991) 4 ACSR 411 Occidental Life Insurance Company of Australia Ltd v Life Style Planners Pty Ltd (1992) 9 ACSR 171 R v Nance (1740) 7 Mod 337; 87 ER 1277 CASES CITED : R v Owens (1859) 28 LJ QB 316 R v Smith (1838) 1 Jebb & Sy 621 Re Adams International Food Traders Pty Ltd (1988) 13 NSWLR 282 Re Allebart Pty Ltd (in liq) [1971] 1 NSWLR 24 Re Amalgamated Engineering Union (1963) 4 FLR 325 Re Australian Continental Resources Ltd (1975) 10 ACTR 19 Re Biposo Pty Ltd (1995) 17 ACSR 730 Re Bradford Investments Ltd [1991] BCLC 224, also reported [1990] BCC 740 Re Central Spring Works Australia Pty Ltd (2000) 34 ACSR 164 Re Chevron Furnishers Pty Ltd; QAI v Harris (1993) 12 ACSR 565 Re Club Superstores Australia Pty Ltd (1993) 10 ACSR 730 Re Compaction Systems Pty Ltd (1976) 2 ACLR 135 Re Contract Corp (Gooch's case) (1872) LR 7 Ch App 207 Re Gertzenstein Ltd [1937] Ch 115 Re Giant Resources Ltd [1991] 1 Qd R 107 Re Horbury Bridge Coal, Iron & Wagon Co (1879) 11 Ch D 109 Re Imobridge Pty Ltd (2000) 18 ACLC 29 Re Intercontinental Properties Pty Ltd (1977) 2 ACLR 488 Re Lamb 169 A (2d) 822, 830 (NJ)(1961) Re Mecirt Holdings Pty Ltd (1998) 16 ACLC 1148 Re National Safety Council of Australia Victorian Division [1990] VR 29 Re Obie Pty Limited (No. 4) (1984) 8 ACLR 967 Re Oriel Homes Pty Ltd (1997) 15 ACLC 564 Re Parker (1985) 79 FLR 338 Re Pembury Pty Ltd (1991) 4 ACSR 759; [1993] Qd R 125.(Qd SC) Re PW Saddington & Sons Pty Ltd (1990) 2 ACSR 158 Re Queensland Stations Pty Ltd (1991) 9 ACLC 1341 Re Ross Wood & Sons Pty Ltd (1997) 23 ACSR 291 Re Thompson (1995) 61 FCR 544 Re Timberland Ltd (1979) 4 ACLR 259 Re Tosich Construction Pty Ltd (1997) 143 ALR 18 Re Trivan Pty Ltd (1996) 14 ACLC 1654 Re Vector Capital Ltd (1997) 23 ACSR 182 Re William Felton & Co Pty Ltd (1998) 16 ACLC 1294 Roux v Australian Broadcasting Commission [1992] 2 VR 577 Sindel v Georgiou (1984) 154 CLR 661, 667; 58 ALJR 515 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332 Tracker Software International Inc v Smith (1997) 24 ACSR 644 Vincent, White & Associates Pty Ltd v Vouris (1998) 28 ACSR 93 Wentworth v Wentworth (Young J, unreported, 12 December 1994) DECISION : See paras 176, 177, 187, 188, 270, 271, 272, 273.