NRMA Limited v Scandrett & Anor [2002] NSWSC 1123

Reported Decision : 43 ACSR 401 (2003) 21 ACLC 176

New South Wales Supreme Court

CITATION : NRMA Limited v Scandrett & Anor [2002] NSWSC 1123 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 5261/02 HEARING DATE(S) : 18 November, 2002 JUDGMENT DATE : 25 November 2002

National Roads and Motorists' Association Limited - Plaintiff PARTIES : Ian Morris Scandrett - First Defendant William Snodgrass - Second Defendant JUDGMENT OF : Palmer J

COUNSEL : M.L.D. Einfeld QC, R.G. McHugh - Plaintiff No appearance for Defendants SOLICITORS : Corrs Chambers Westgarth - Plaintiff No appearance for Defendants CATCHWORDS : CORPORATIONS - MEETINGS - REQUISITION - DIRECTORS - RESOLUTION FOR REMOVAL - Defendants requisitioned general meeting for the purpose of considering single resolution for the removal of five named directors as a group (Resolution A) - whether more than one director can validly be removed by a single resolution - general policy of Corporations Act - construction of s.203D. HELD: Resolution A is valid. - RESOLUTION FOR REMOVAL - FUTURE DIRECTORS - Defendants requisitioned general meeting for purpose of considering resolution to remove any director who might be appointed during a specified future period to fill casual vacancies (Resolution B) - construction of s.203D. HELD: Section 203D applies only to a resolution to remove a director who is in office at the time that notice of intention to remove the resolution is given to the company - Resolution B is invalid. - REQUISITION - IMPROPER PURPOSE - VALIDITY - Whether Defendants had improper purpose in exercising right to requisition a general meeting under s.249D - whether exercise of right was invalid - distinction draw between the purpose for which a right is exercised and the motive for the exercise of that right - principles discussed. HELD: No evidence to justify conclusion that the Defendants' purpose in exercising the requisition right was other than to procure a general meeting to consider and, if thought fit, to pass Resolutions A and B - hostility, ill-will or self interest does not invalidate the exercise of the requisition right if the purpose of the requisition is to have a resolution considered at a general meeting. Acts Interpretation Act, 1901 (Cth) - s.23(b) Companies Act 1961 - s.118 LEGISLATION CITED : Interpretation Act 1897 (NSW) - s.21(b) Report of the Committee on Company Law Amendment (UK Cmd 6659, 1945) ("the Cohen Report") Corporations Act, 2001 (Cth) - s.201E, s.203D, s.249D, s.249Q, s.1322 - Claremont Petroleum NL v Indosuez Nominees Pty Ltd (1986) 10 ACLR 520 - Dowling v Colonial Mutual Life Assurance Society (1915) 20 CLR 509 - Humes Ltd v Unity APA Ltd (No 1) [1987] VR 467 - IOC Australia Pty Ltd v Mobil Oil Australia Ltd (1975) 11 ALR 417 - NRMA v Bradley (2002) 42 ACSR 616 CASES CITED : - NRMA v Snodgrass (2002) 42 ACSR 371 - Ngurli Ltd, Carinya Ltd, Fitzroy Ltd & Myall Ltd v - McCann (1953) 90 CLR 425 - Swansson v R.A. Pratt Properties Pty Ltd (2002) 42 ACSR 313 - Taylor v McNamara [1974] 1 NSWLR 164 - Totally & Permanently Incapacitated Veterans' Association of NSW Ltd v Gadd (1998) 28 ACSR 549 - Williams v Spautz (1992) 174 CLR 509 DECISION : Requisition for meeting of NRMA to consider Resolution A valid; requisition for meeting to consider Resolution B invalid; general meeting of NRMA required to be held; temporary extension of time granted.