Cheerine Group (International) Pty Ltd v Yeung [2006] NSWSC 1047

New South Wales Supreme Court

CITATION : Cheerine Group (International) Pty Ltd v Yeung [2006] NSWSC 1047

HEARING DATE(S) : 25, 26 September 2006 JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Young CJ in Eq

EX TEMPORE JUDGMENT DATE : 09/26/2006

DECISION : Invalid appointment of alternate director. Invalid resolution appointing administrators. First defendant to pay costs of plaintiff and second defendant on the indemnity basis and in default of payment of such costs by the first defendant, the administrators to pay.

CATCHWORDS : CORPORATIONS [91]- Directors- Validity of appointment- One director purporting to use power of attorney of another director to appoint alternate director- Power of attorney cannot confer powers of director- Held invalid appointment. CORPORATIONS [103] Validity of proceedings- Purported resolution appointing administrators- Deliberate convening of invalid meeting- Substantial injustice- Not procedural irregularity- Held resolution invalid. COSTS [575]- Administrators- Duty to inquire- Administrators' attention directed to invalidity of appointment- Pursued application- Held liable to pay costs upon default of payment by first defendant.

LEGISLATION CITED : Corporations Act 2001 (Cth) ss 198D, 1322

Deputy Commissioner of Taxation v Portinex Pty Ltd (No 2) (2000) 34 ACSR 422 Grant v John Grant & Sons Pty Ltd (1950) 82 CLR 1 Mancini v Mancini (1999) 17 ACLC 1570 CASES CITED : McIntosh v CMX Technologies Pty Ltd (2005) 56 ACSR 283 Permanent Trustee Co Ltd v Bernera Holdings Pty Ltd (2004) 11 BPR 21,505 Re P W Saddington & Sons Pty Ltd (1990) 19 NSWLR 674 Saad v Doumeny Holdings Pty Ltd [2005] NSWSC 893 Whitehouse v Capital Radio Network Pty Ltd (2004) 48 ACSR 569