Charlton v Baber [2003] NSWSC 745

Reported Decision : 47 ACSR 31 (2003) 21 ACLC 1671

New South Wales Supreme Court

CITATION : Charlton v Baber [2003] NSWSC 745 HEARING DATE(S) : 28/07/03, 30/07/03, 31/07/03 JUDGMENT DATE : 15 August 2003

JURISDICTION: Equity Division Corporations List JUDGMENT OF : Barrett J DECISION : Claims of plaintiff personally against first defendant struck out. Leave for plaintiff to bring derivative proceedings on behalf of fourth defendant granted as to some claims and refused as to others.

CATCHWORDS : CORPORATIONS - duties of directors - whether director owes comprehensive fiduciary duty to individual shareholder - no facts pleaded to show ascendancy, influence, vulnerability or reliance - CORPORATIONS - statutory derivative action - whether available when company in liquidation - s.237 criteria - meaning of "best interests" - court's powers as to costs - possibility of order as to costs (or for security for costs) immediately proceedings brought - CORPORATIONS - leave to proceed against company in liquidation - applicable section where winding up sourced in s.446A LEGISLATION CITED : Corporations Act 2001 (Cth), ss.233, 236, 237, 446A, 459A, 471B Supreme Court Rules, Part 15 rule 26(1) Aliprandi v Griffith Vintners Pty Ltd (1991) 6 ACSR 250 Awada v Linknarf Ltd (2002) 55 NSWLR 745 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Re B and B (1997) 142 FLR 430 BL & GY International Co Ltd v Hypec Electronics Pty Ltd (2001) 19 ACLC 1622 Breen v Williams (1996) 186 CLR 71 Brightwell v RFB Holdings Pty Ltd (2003) 44 ACSR 186 Brunninghausen v Glavanics (1999) 46 NSWLR 538 CDJ v VAJ (1998) 197 CLR 172 Chan v Zacharia (1984) 154 CLR 178 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Department of Community Services v Y [1999] NSWSC 644 Elders v Swimbank [1999] FCA 798 ERS Engines Pty Ltd v Wilson (1994) 14 ACSR 531 Fadden v Federal Commissioner of Taxation (1945) 70 CLR 555 Ferrari Investment (Townsville) Pty Ltd (in liq) v Ferrari [2000] 2 QdR 359 Foss v Harbottle (1843) 2 Hare 461 CASES CITED : Goozee v Graphic World Group Holdings Pty Ltd (2002) 42 ACSR 534 Herbert v Redemption Investments Pty Ltd [2002] QSC 340 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Jeans v Deangrove Pty Ltd [2001] NSWSC 84 Keyrate Pty Ltd v Harmac Pty Ltd (2001) 38 ACSR 396 Lakshman v Law Image Pty Ltd [2002] NSWSC 888 McCarty v Council of the Municipality of North Sydney (1918) 18 SR (NSW) 210 McGain v Federal Commissioner of Taxation (1966) 116 CLR 173 Metyor Inc v Queensland Electronic Switching Pty Ltd (2002) 42 ACSR 398 Public Trustee v Blackwood (1998) 8 TasR 256 Richard Brady Franks Ltd v Price (1937) 58 CLR 112 Queensland Mines Ltd v Hudson (1978) 52 ALJR 399 (PC) Roach v Winnote Pty Ltd [2001] NSWSC 822 Ron Kingham Real Estate Pty Ltd v Edgar [1999] 2 QdR 439 Russell Kinsella Pty Ltd v Kinsella (1983) 8 ACLR 384 Spies v The Queen (2000) 201 CLR 603 Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313 Walker v Wimborne (1976) 137 CLR 1 Warman International Ltd v Dwyer (1995) 182 CLR 544 Shane Edward Charlton - Plaintiff Mark Steven Baber - First Defendant PARTIES : Elizabeth Joan Baber - Second Defendant Neville Baber - Third Defendant Newcastle Auto Air Pty Limited (in liq) - Fourth Defendant Griffiths Road Pty Limited - Sixth Defendant FILE NUMBER(S) : SC 1364/02 COUNSEL : Ms M.A.C. Painter - Plaintiff Mr A.A. Henskens - First, Second, Third and Sixth Defendants SOLICITORS : Mason Lawyers - Plaintiff Bilbie Dan - First, Second, Third and Sixth Defendants