Saad v Doumeny Holdings Pty Limited [2005] NSWSC 893

New South Wales Supreme Court

CITATION : Saad v Doumeny Holdings Pty Limited [2005] NSWSC 893

HEARING DATE(S) : 08/06/05-10/06/05, 22/06/05

JUDGMENT DATE : 8 September 2005

JURISDICTION : Civil

JUDGMENT OF : Burchett AJ at 1

DECISION : The purported appointment of the second defendant as a director of the first defendant and certain allotments of shares in the first defendant were invalid and should not be validated under s 1322 of the Corporations Act.

CATCHWORDS : (Corporations) (Power of Attorney) - Purported appointment of director of company - purported allotment of shares - whether holder of power of attorney of director and shareholder in coma could utilise the power of attorney - whether general meeting or directors had power to allot shares - fiduciary duty of directors with respect to power to allot shares - whether power of attorney available for performance of director's duty - fiduciary obligations attached to power of attorney - non-voting member's right to notice of meeting - whether meeting of one was a meeting - whether validation under s 1322 was available - nature and scope of s 1322.

LEGISLATION CITED : Corporations Act (NSW) 2001

Gillett v Peppercorne (1840) 3 Beav. 78; 49 ER 31 Greenwood v Harvey (1965) 66 SR (NSW) 496 Howard Smith Ltd v Ampol Petroleum Ltd [1974] AC 821 Mancini v Mancini (1999) 17 ACLC 1570 Massey v Wales (2003) 47 ACSR 1 Meinhard v Salmon (1928) 249 NY 458 Midland Bank, Limited v Reckitt 1933 AC 1 National Roads & Motorists' Association v Parker (1986) 6 NSWLR 517 National Roads & Motorists' Association Ltd v Bradley (2002) 42 ACSR 616 Quin & Axtens, Limited v Salmon [1909] AC 442 Sutton v Forst (1925) 55 OLR 281 Whitehouse v Carlton Hotel Proprietary Limited (1987) 162 CLR 285 CASES CITED : Re Compaction Systems Pty Ltd [1976] 2 NSWLR 477 AW & LM Forrest Pty Ltd v Beamish (1998) BC 9804350 Re MJ Shanley Contracting Ltd (1979) 124 Sol J 239 Equity Nominees Limited v Tucker (1967) 116 CLR 518 Re Chinese Cultural Club Ltd (2004) 49 ACSR 568 McVeigh v Merlo [2004] VSC 107 Deputy Commissioner of Taxation v Portinex Pty Ltd (2000) 34 ACSR 391 Yazbek v Aldora Holdings Pty Ltd (2003) 45 ACSR 53 NRMA Insurance Group Ltd v Spragg (2001) 38 ACSR 174 Lockwood & Fitzgerald v White (2005) 23 ACLC 379 In the Matter of Tony Barlow Australia Ltd (2005) 23 ACLC 821 Wave Capital Limited (2003) 21 ACLC 1995