Alan Davis Group v Rivkin Financial Services [2005] NSWSC 369

Reported Decision : 53 ACSR 610 (2005) 23 ACLC 746

New South Wales Supreme Court

CITATION : Alan Davis Group v Rivkin Financial Services [2005] NSWSC 369

HEARING DATE(S) : 14/04/05, 18/04/05

JUDGMENT DATE : 26 April 2005

JUDGMENT OF : Gzell J

DECISION : Plaintiff entitled to declaration that buy-back agreement validly terminated and to damages for breach of contract and/or under the Australian Securities and Investments Commission Act 2001 (Cth), s 12GM. Not entitled to declarations and injunction with respect to voting right.

CATCHWORDS : CORPORATIONS - Transactions affecting share capital - Selective share buy-back agreements in consideration for other shares and cash negotiated by others in settlement disputes - Agreements conditional upon special or unanimous approval of shareholders - Plaintiff's agreement contained provision that directors agreed to recommend shareholder approval - Market value of other shares rose - Notice of general meeting contained statement that majority of directors recommended approval if other share price at specified amount - One director recommended against - Plaintiff purported to terminate - Whether termination valid - ASX listing rule 10.1 required approval of general meeting to disposal of a substantial asset under another selective share buy-back - Whether plaintiff an associate as acting in concert with party that negotiated settlement - Whether plaintiff excluded from voting under listing rule 14.11

Australian Securities and Investments Commission Act 2001 (Cth) LEGISLATION CITED : Trade Practices Act 1974 (Cth) Corporations Act 2001 (Cth)

Transfield Pty Ltd v Arlo International Ltd (1980) 144 CLR 83 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Scanlan's New Neon Ltd v Tooheys Ltd (1942-1943) 67 CLR 169 Global Network Services Pty Ltd v Legion Telecall Pty Ltd [2001] NSWCA 279 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 SR (NSW) 632 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1986-1987) 162 CLR 549 CASES CITED : Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 Thorby v Goldberg (1964) 112 CLR 597 Oraka Pty Ltd v Leda Holdings Ltd (1997) ATPR 41-558 at 43717 Ford's Principles of Corporations Law, Butterworths, Australia, 2000 Industrial Equity Ltd v Commissioner for Corporate Affairs (1990) VR 780 IPT Systesm Ltd v MTIC Corporate Pty Ltd (2000) 158 FLR 349 at 355-356).