Magafas v Carantinos & Anor [2006] NSWSC 1459

New South Wales Supreme Court

CITATION : Magafas v Carantinos & Anor [2006] NSWSC 1459

HEARING DATE(S) : 27 November 2006 JURISDICTION : Equity Division

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 11/27/2006

DECISION : Leave granted to bring statutory derivative action and to amend statement of claim. Interlocutory injunctive relief granted to preserve assets of company and ensure notice to plaintiff. Defendant to pay plaintiff's costs.

CATCHWORDS : CORPORATIONS – statutory derivative action – application for leave under Corporations Act 2001 (Cth) ss 236, 237 by member and director of deadlocked company to bring proceedings for breach of directors duties against other director – whether questions of credit of applicant relevant to good faith requirement – held, not relevant – where same issues will be raised in proceedings as presently constituted whether or not leave is granted – COSTS – interlocutory application – where respondent puts applicant to proof of all matters – costs order in favour of applicant independent of final outcome of proceedings warranted.

LEGISLATION CITED : Corporations Act 2001 (Cth), ss 232, 237 Fair Trading Act 1995 (NSW)

Carpenter v Pioneer Park Pty Limited (in liq) (2004) 211 ALR 457 Charlton v Baber (2003) 47 ACSR 31 Fiduciary Limited v Morningstar Research Pty Limited [2005] NSWSC 442 CASES CITED : Goozee v Graphic World Group Holdings Pty Limited (2002) 42 ACSR 534 Jeans v Deangrove Pty Ltd [2001] NSWSC 84 Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313