Kirwan v Cresvale Far East Ltd (In liq) [2002] NSWCA 395

Reported Decision : (2003) 44 ACSR 21 (2003) 21 ACLC 371

New South Wales Court of Appeal

CITATION : Kirwan v Cresvale Far East Ltd (In liq) [2002] NSWCA 395 FILE NUMBER(S) : CA 40188/01 HEARING DATE(S) : 19, 20 August 2002 JUDGMENT DATE : 10 December 2002

Nigel Peter Kirwan (Appellant/4th Cross Respondent) Cresvale Far East Limited (1st Respondent/1st Cross Respondent) PARTIES : Cresvale Securities Limited (2nd Respondent/2nd Cross Respondent) Vanda Russell Gould (3rd Respondent/Cross Appellant) Cresvale Capital Pty Limited (4th Respondent/3rd Cross Respondent) JUDGMENT OF : Meagher JA at 1; Giles JA at 4; Young CJ in Eq at 266

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT 3672/00 FILE NUMBER(S) : LOWER COURT Austin J JUDICIAL OFFICER :

D J Higgs SC and R J H Darke (Appellant) COUNSEL : M Cashion SC (1st Respondent) P M Wood (2nd & 4th Respondents) S D Rares SC and P J Dowdy (3rd Respondent) John A Glynn & Associates (Appellant) SOLICITORS : Minter Ellison (1st Respondent) Blake Dawson Waldron (2nd & 4th Respondents) Henry Davis York (3rd Respondent) CATCHWORDS : CORPORATIONS- Administrator- Fiduciary duties- Duties re exercising casting votes- Standards of conduct for administrators- Liability of administrator to suffer order for costs. CORPORATIONS- Shares- Allotment- When power to allot exceeded. EQUITY- Equitable relief- Requirement to do equity. MEETINGS- Casting votes- Principles governing exercise. PROCEDURE- Costs- Administrator arguing both for the company and himself personally- How costs borne if unsuccessful. (D) Corporations Act 2001 (Comm) s 175, Pt 5.3A (particularly ss 439A(4)(c), 443C, 443D, 447E), ss 513C, 536, 600B LEGISLATION CITED : Corporations Regulations 5.6.21, 5.6.23, 5.6.26 Supreme Court Act 1970, s 76 Adsett v Berlouis (1992) 37 FCR 201 Ainsworth v Criminal Justice Commission (1992) 175 CLR 564 Alati v Kruger (1955) 94 CLR 216 Breen v Williams (1996) 186 CLR 71 Cadwallader v Bajco Pty Ltd [2002] NSWCA 328 Carr v Finance Corp of Australia Ltd (1981) 147 CLR 246 Chief Constable of North Wales Police v Evans [1982] 1 WLR 1155 City & Suburban Pty Ltd v Smith (No 2) (Merkel J, Federal Court of Australia, 31.7.1998) Commonwealth v McCormack (1984) 155 CLR 273 Community Development Pty Ltd v Engwirda Construction Co (1969) 120 CLR 455 Deputy Commissioner of Taxation v Comcorp Australia (1996) 21 ACSR 590 Equiticorp Finance Ltd (In liq) v Bank of New Zealand (1993) 32 NSWLR 50 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672 Flower & Hart v White Industries (Qld) Pty Ltd (1999) 87 FCR 134 Gambotto v WCP Ltd (1995) 182 CLR 432 Greenhalgh v Arderne Cinemas Ltd [1951] Ch 286 Greir's case (1889) 45 Ch D 606 Harlowes Nominees Pty Ltd v Woodside (Lakes Entrance) Oil NL (1968) 121 CLR 483 Hindle v John Colton Ltd (1919) 56 ScLR 625 Hirsche v Sims [1894] AC 654 Howard Smith Ltd v Ampol Petroleum Ltd [1974] AC 821 Kinsela v Russel Kinsela Pty Ltd (In liq) (1986) 4 NSWLR 722 Kokotovich Constructions Pty Ltd v Wallington (1995) 17 ACSR 478 Mills v Mills (1938) 60 CLR 150 National Australia Bank Ltd v Market Holdings Pty Ltd (2001) 161 FLR 1; 37 ACSR 629 National Trustees Executors & Agency Co of Australasia Ltd v Barnes (1941) 64 CLR 268 Nell v Longbotham [1894] 1 QB 767 CASES CITED: Network Exchange Pty Ltd v MIG International Communications Pty Ltd (1994) 13 ACSR 544 Ngurli Ltd v McCann (1953) 90 CLR 425 Oppenshaw v Whitehead (1854) 9 Ex 384; 156 ER 163 Pilmer v Duke Group Ltd (2001) 75 ALJR 1067 Queensland Mines Ltd v Hudson (1978) 52 ALJR 399 R v Bradford Council; Ex parte Corris [1989] 3 All ER 156 Re Anderson Group [2002] NSWSC 764 Re Beddoe; Downes v Cottam [1893] 1 Ch 547 Re Biposo Pty Ltd; Condon v Rogers (1995) 17 ACSR 730 Re Coalleen Pty Ltd [2000] 1 Qd R 245 Re Curry and Mooney Developments Ltd [1978] Qd R 277 Re GAE Pty Ltd [1962] VR 252 Re Martco Engineering Pty Ltd (1999) 32 ACSR 487 Re Network Welding Pty Ltd (No 2) [2001] NSWSC 809 Re Oriel Homes Pty Ltd (1997) 15 ACLC 564 Re Shanks Byrne Industries Pty Ltd [1979] 2 NSWLR 880 Re The London & Northern Bank Ltd (Cozens-Hardy J, 17.11.1899) Re William Hockley Ltd [1962] 1 WLR 555 Re Wilson Lovatt & Sons Ltd [1977] 1 All ER 274 Re Zambena Pty Ltd (1995) 13 ACLC 1020 Vadasz v Pioneer Concrete (SA) Pty Ltd (1995) 184 CLR 102 Vincent White & Associates Pty Ltd v Vouris (1998) 28 ACSR 93 Wallington v Kokotovich Constructions Pty Ltd (1993) 11 ACSR 759 Wallsend Properties Ltd v Beaver Properties Pty Ltd [1973] 2 NSWLR 815 Walters v Woodbridge (1878) 7 Ch D 504 Whitehouse v Carlton Hotel Pty Ltd (1987) 162 CLR 285 Wooster v Mullins 40 A 144 (1894) (Conn SC) Young v Sherman [2002] NSWCA 281 DECISION : See paras 449, 450 and 451