Veremu Pty Ltd & Ors v Ezishop.Net Ltd & Ors [2003] NSWCA 317

Reported Decision : 47 ACSR 681

New South Wales Court of Appeal

CITATION : Veremu Pty Ltd & Ors v Ezishop.Net Ltd & Ors [2003] NSWCA 317 HEARING DATE(S) : 30 October 2003 JUDGMENT DATE : 10 November 2003

JUDGMENT OF : Handley JA at 1; Giles JA at 2; Santow J at 24 DECISION : Appeal dismissed with costs.

CATCHWORDS : Share subscriber agreement - venture capital company - company on brink of insolvency - agreement to subscribe for shares in the future by a funding programme - failed to subscribe - company went into liquidation - company in liquidation sued for subscription amounts - able and willing to issue shares - whether agreement frustrated - whether performance radically changed - whether common assumption that company would continue trading - ceasing trading and liquidation in contemplation, subscribers took the risk, and the agreement covered the situation - no frustration. Baltic Shipping Co v Dillon (1993) 176 CLR 344; CASES CITED : Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337; Davis Contractors Ltd v Fareham Urban District Council (1956) AC 696; Roxborough v Rothmans of Pall Mall (2001) 208 CLR 516. Veremu Pty Ltd - First Appellant CBM Mining Pty Ltd - Second Appellant Galnom (No 1) Pty Ltd - Third Appellant Jam Family Investments Pty Ltd - Fourth Appellant Michael Gidman Hand - Fifth Appellant PARTIES : Charles Brian Marheine - Sixth Appellant Tim Efkarpidis - Seventh Appellant Malcolm Donald Coleman - Eighth Appellant Ezishop.Net Ltd - First Respondent Anthony Milton Sims - Second Respondent Scott Darren Pacoe - Third Respondent FILE NUMBER(S) : CA 40245/03 COUNSEL : B W Walker SC & R J Powell SC -Appellants B A Coles QC & R K Newton - Respondents SOLICITORS : Bowring Stone Lawyers - Appellants Purcell Insolvency Lawyers - Respondents