Goozee v Graphic [2002] NSWSC 640

Reported Decision : 42 ACSR 534 (2002) 20 ACLC 1502

New South Wales Supreme Court

CITATION : Goozee v Graphic [2002] NSWSC 640 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 2915/02 HEARING DATE(S) : 15/07/02 JUDGMENT DATE : 25 July 2002

Roger George Goozee - First Plaintiff Mary Rose Goozee - Second Plaintiff Graphic World Group Holdings Pty Limited - First Defendant Ronald Francis Hoolahan - Second Defendant Pyomon Pty Limited - Third Defendant The Bentley Printing Company Pty Limited - Fourth Defendant Keyset Phototype Pty Limited - Fifth Defendant PARTIES : Erolmount Pty Limited - Sixth Defendant Toveheld Pty Limited - Seventh Defendant Double Pay Nominees Pty Limited - Eighth Defendant Jem-K Printing Pty Limited - Ninth Defendant Art Etc Pty Limited - Tenth Defendant Les Baddock Pty Limited - Eleventh Defendant Les Baddock & Sons Pty Limited - Twelfth Defendant The Trade Ruling & Binding Co Pty Limited - Thirteenth Defendant JUDGMENT OF : Barrett J

COUNSEL : Mr C R Newlinds - Plaintiffs Mr M D Einfeld QC/Mr A J McInerney - Defendants SOLICITORS : Kemp Strang - Plaintiffs Carneys Lawyers - Defendants CATCHWORDS : CORPORATIONS - oppression and other conduct within s.232 - whether sole shareholder can be "victim" of such conduct - non-payment of dividend by wholly-owned subsidiary to immediate parent - failure of parent to obtain dividend from wholly-owned subsidiary - consolidated retained earnings position does not indicate capacity of any group company to pay dividend - CORPORATIONS - statutory derivative action - s.237 tests discussed - court cannot grant leave unless all tests satisfied - serious question to be tried not shown - collateral purpose indicates lack of good faith - not in best interests of parent that it pursue s.232 claim against subsidiary based on non-payment of dividend LEGISLATION CITED : Corporations Act 2001 (Cth) Corporate Law Economic Reform Program Act 1999 (Cth) Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 76 ALJR 1 Bagot Well Pastoral Co Pty Ltd v Reid (1993) 61 SASR 165 Re D G Brims and Sons Pty Ltd (1995) 16 ACSR 559 Fexuto v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672 Re G Jeffrey (Mens Store) Pty Ltd (1984) 9 ACLR 193 Greenhalgh v Arderne Cinemas Ltd [1951] Ch 286 Re H R Harmer Ltd [1959] 1 WLR 62 Industrial Equity Ltd v Blackburn (1977) 137 CLR 564 Jeans v Deangrove Pty Ltd [2001] NSWSC 84 CASES CITED : Maronis Holdings Ltd v Nippon Credit Australia Ltd (2001) 38 ACSR 404 Nicholas v Soundcraft Electronics Ltd [1993] BCLC 360 QBE Insurance Ltd v ASC (1992) 38 FCR 270 RTP Holdings Pty Ltd v Roberts (2000) 36 ACSR 170 Re Sam Weller Ltd [1990] 1 Ch 683 Scottish Co-operative Wholesale Society Ltd v Meyer [1959] AC 324 Swansson v Pratt [2002] NSWSC 583 Walker v Wimborne (1976) 137 CLR 1 Wayde v NSW Rugby League Ltd (1985) 180 CLR 459 Williams v Spautz (1992) 174 CLR 509 DECISION : Application for leave to commence derivative actions dismissed