David Alexander Grace v Deborah Sharon Grace & 5 ors [2007] NSWSC 6

Reported Decision : (2007) 25 ACLC 141

New South Wales Supreme Court

CITATION : David Alexander Grace v Deborah Sharon Grace & 5 ors [2007] NSWSC 6

HEARING DATE(S) : 21, 22 December 2006

JUDGMENT DATE : 18 January 2007

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Brereton J

DECISION : Provisional liquidator appointed to third and fourth defendant companies, but not fifth defendant. Interlocutory injunction granted restraining fifth defendant from alienating encumbering or dealing with assets except with consent of plaintiff or upon 7 days notice to plaintiff, and restraining first and second defendant directors from causing or permitting any prohibited dealing. Order for delivery of books of fifth defendant to neutral premises with all directors to have supervised access.

CATCHWORDS : CORPORATIONS – External administration – winding up – provisional liquidation – circumstances in which appointment made – where winding up application based on oppression and just and equitable grounds – where "buy-out order" more likely than winding up order - where seriously arguable case that plaintiff should be entitled to control of two companies but not third company - where defendants consent to final winding up order but not to appointment of provisional liquidator in respect of the two companies, and oppose winding up of third – where significant risk that company resources will be expended on defence of majority, but otherwise no jeopardy to assets - significance of probable destination of future control of companies

LEGISLATION CITED : (CTH) Corporations Act, ss 233, 461(1)(k) (CTH) Family Law Act 1975, s 79

Alessi v The Original Australian Art Co Pty Ltd (1989) 7 ACLC 595 Australian Securities Commission v Solomon (1996) 19 ACSR 73 Re Carapark Industries Pty Ltd (in liq) [1967] 1 NSWR 337 Re Club Mediterranean Pty Ltd (1975) 11 SASR 481; 1 ACLR 36 Constantinidis v JGL Trading Pty Ltd (1995) 17 ACSR 625 Re D G Brims and Sons Pty Ltd (1995) 16 ACSR 559 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688 CASES CITED : Re J N Taylor Holdings Ltd; Zempilas v J N Taylor Holdings Ltd (1990) 3 ACSR 600 Lubavitch Mazal Pty Limited v Yeshiva Properties No 1 Pty Limited (2003) 47 ACSR 197 Re McLennan Holdings Pty Ltd (1983) 7 ACLR 732; 1 ACLC 786 Natural Extracts Pty Ltd v Stotter (unreported, FCA, 18 December 1998, Hely J) O'Toole & O'Toole (1991) 105 FLR 339; (1991) 15 Fam LR 265; (1992) FLC 92-285 Rural Industries Cooperative Society Ltd v Porky Pigs Pty Ltd (1988) 12 ACLR 794 Triulcio v Chase Property Investments Pty Ltd [2003] NSWSC 861 Wimborne v Brien (1997) 23 ACSR 576 Zempilas v JN Taylor Holdings Ltd (No 2) (1990) 55 SASR 103; 3 ACSR 518