Zimmerman Holdings Pty Ltd v Cooney [2002] NSWSC 387

New South Wales Supreme Court

CITATION : Zimmerman Holdings Pty Ltd v Cooney [2002] NSWSC 387 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 5093 of 2001 HEARING DATE(S) : 3, 4, 18 April 2002 (written submissions to 2 May 2002) JUDGMENT DATE : 3 May 2002

PARTIES : Zimmerman Holdings Pty Limited (Plaintiff) Dennis Cooney (Defendant) JUDGMENT OF : Master McLaughlin

COUNSEL : R. Harper (Plaintiff) J. Darvall (Defendant) SOLICITORS : Massey Bailey Solicitors (Plaintiff) Ashlars Lawyers (Defendant) CATCHWORDS : Corporations - Statutory demand - Application by company to set aside demand - Challenge to retainer of solicitors - Notice of directors' meeting not given to one of two directors - Quorum not present at meeting - Validity of purported appointment of additional director - Whether meeting can be treated as a general meeting of company - Whether one of two directors has authority to commit or bind company - Possibility of subsequent ratification of appointment of director and retainer of solicitors - Whether proceedings should be stayed pending possible ratification or should be dismissed. LEGISLATION CITED : Corporations Act AW & LM Forrest Pty Ltd v Beamish (1998) 146 FLR 450 Adams v London Motor Builders [1921] 1 KB 495 Re Australian Koyo Limited (1984) 8 ACLR 928 Grant v John Grant & Sons Pty Limited (1950) 82 CLR 1 CASES CITED : Halliday v High Performance Personnel Pty Ltd (1993) 113 ALR 637 Halliday v SACS Group Pty Ltd (Dawson J, 23 December 1992, unreported) Harry S Bagg's Liquidation Warehouse Pty Ltd v Whittaker (1982) 44 NSWLR 421 Knox Street Apartments Pty Ltd v Flexman [2002] NSWSC 107 Morris v Kanssen [1946] AC 459 Omega Estates Pty Limited v Ganke (1963) NSWLR 1416 DECISION : (1). I order that the proceedings be dismissed as incompetent; (2). I order that Massey Bailey, Solicitors, pay the costs of the Defendant of the notice of motion filed by the Defendant on 3 April 2002 and of the proceedings.