Ehsman v Nutectime International [2006] NSWSC 887

Reported Decision : 58 ACSR 705

New South Wales Supreme Court

CITATION : Ehsman v Nutectime International [2006] NSWSC 887

HEARING DATE(S) : 31 March 2006

JUDGMENT DATE : 1 September 2006

JURISDICTION : Equity

JUDGMENT OF : Austin J

DECISION : See under heading "Conclusions"

CATCHWORDS : CORPORATIONS - statutory derivative action - application by 35% shareholder/director to bring derivative proceedings after company's assets were transferred to a company from which the applicant is excluded - inadequacies of proposed points of claim - whether those inadequacies prevent the court from determining the application under s 237 - distinction between personal and derivative claims - whether court is satisfied concerning good faith, best interests of company and serious question to be tried - ancillary order for applicant to indemnify company with respect to costs of derivative proceedings - considerations relating to the bringing of derivative and personal claims in single proceedings

LEGISLATION CITED : Corporations Act 2001 (Cth) ss 180-184, 232, 236-242

Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Castlemaine Tooheys Ltd v State of South Australia (1986) 161 CLR 148 Charlton v Baber (2003) 47 ACSR 31 CASES CITED : Fiduciary Ltd v Morningstar Research Pty Ltd (2005) 53 ACSR 732 Keyrate Pty Ltd v Hamarc Pty Ltd (2001) 38 ACSR 396 Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 Metyor Inc v Queensland Electronic Switching Pty Ltd (2002) 42 ACSR 398 Swansson v RA Pratt Properties Pty Ltd (2002) 42 ACSR 313