Whitlam v. Australian Securities & Investment Commission [2003] NSWCA 183

Reported Decision : (2003) 46 ACSR 1 57 NSWLR 559

New South Wales Court of Appeal

CITATION : Whitlam v. Australian Securities & Investment Commission [2003] NSWCA 183 HEARING DATE(S) : 27, 28, 29 and 30 May 2003 JUDGMENT DATE : 10 July 2003

JUDGMENT OF : Hodgson JA at 1; Ipp JA at 1; Tobias JA at 1 DECISION : 1. Appeal allowed with costs, and cross-appeal dismissed with costs. 2. Orders of primary judge set aside. 3. In lieu thereof, proceedings dismissed with costs. 4. Application for leave to appeal dismissed, with no order as to costs.

CATCHWORDS : APPEALS - Questions of fact - Whether appellable error - CORPORATIONS - General meetings - Votes of members - Chairman appointed proxy - Chairman fills out and lodges, but does not sign, poll paper - Votes counted - Whether chairman failed to vote - Whether breach of Corporations Law s.250A. - CORPORATIONS - Directors - Duties of directors - Director appointed proxy for members - Whether action pursuant to proxy appointment an exercise of a director's powers or a discharge of a director's duties - PROCEDURE - Pleading - Surprise - Natural justice - No allegation by respondent of possible bases for finding as to directors' duties - Whether Court should itself formulate and determine such bases Corporations Law 1998, ss.180(1), 232, 250A, 1317E, 1317S LEGISLATION CITED : Corporations Act 2001 (Cth), ss.180(1), 250A, 1317E, 1317S Supreme Court Rules Pt.15, rr.7, 13 Briginshaw v. Briginshaw (1938) 60 CRL 336 Brunninghausen v. Glavanics (1999) 46 NSWLR 538 Fox v. Percy (2003) 197 ALR 201 CASES CITED : Industrial Equity Ltd. v. New Redhead Estate & Coal Co. Ltd. [1969] 1 NSWR 565 Kirby v. Sanderson Motors Pty. Ltd. (2001) 54 NSWLR 135 Link Agricultural Pty. Ltd. v. Shanahan & Pivot Ltd. [1999] 1 VR 466 North-West Transportation Co. Ltd. v. Beatty (1887) 12 AppCas 589 Smith v. NSW Bar Association (1992) 176 CLR 256 PARTIES : Nicholas Richard Whitlam - appellant Australian Securites & Invesment Commission - respondent FILE NUMBER(S) : CA 40709/02; 41057/02 COUNSEL : Mr. R.J. Ellicott QC with Mr. A.J.L. Bannon SC and Mr. J.H. Stephenson for appellant Mr. M.A. Pembroke SC with Mr. J.W.J. Stevenson for respondent SOLICITORS : Watson Mangioni, Sydney for appellant ASIC, Sydney for respondent