Universal Financial Group v Mortgage Elimination Services [2006] NSWSC 1132

New South Wales Supreme Court

CITATION : Universal Financial Group v Mortgage Elimination Services [2006] NSWSC 1132

HEARING DATE(S) : 28 - 30 March, 26 April, 10 & 11 May 2006

JUDGMENT DATE : 31 October 2006

JURISDICTION : Equity

JUDGMENT OF : Austin J

DECISION : Declarations and orders to be made under s 588FF on grounds that the deed of assignment and directions as to payment are commercial and insolvent and unreasonable director-related transactions, and therefore voidable transactions

CATCHWORDS : CORPORATIONS - winding up in insolvency - voidable transactions - meaning of "transaction" as regards directions for payment - whether directions for payment and deed of assignment are uncommercial transactions, insolvent transactions and unreasonable director-related transactions - whether breach of directors' fiduciary duty - appropriate orders

LEGISLATION CITED : Corporations Act 2001 (Cth) ss 9, 513A, 513C, 588FB, 588FC, 588FDA, 588FE, 588FF

Demondrille Nominees Pty Ltd v Shirlaw (in liq) (1997) 25 ACSR 535 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672 CASES CITED : Prentice v St George Bank Ltd (2002) 20 ACLC 923 Warman International Ltd v Dwyer (1995) 182 CLR 544 Wily v Bartercard Ltd (2000) 34 ACSR 186

Universal Financial Group Pty Ltd (P1) Total Vision Financial Stratagies Pty Ltd (P2) Daines Financial Solutions Pty Ltd (P3) Mortgage Elimination Services Pty Ltd (in liq)(D1/XC) PARTIES : Warren Donald Turner (D2/XD1) MES Smarter Mortgage Services Pty Ltd (D3/XD2) Commonwealth Bank of Australia Ltd (D4/XD3) Australian Finance Group Ltd (D5/XD4) Lawfund Australia Pty Ltd (D6/XD5)