Denis Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976

New South Wales Supreme Court

CITATION : Denis Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976

HEARING DATE(S) : 4 - 5 September 2008

JUDGMENT DATE : 23 September 2008

JURISDICTION : Supreme Court

JUDGMENT OF : Sackville AJ at 1

Upon the plaintiff undertaking to the Court that he will pay and bear and indemnify the defendant company against all costs, charges and expenses of and incidental to the bringing and continuation of the proceedings brought by him pursuant to order (1) below, except insofar as the Court may in future otherwise direct or allow, the Court makes the following orders: DECISION : (1) Leave be granted pursuant to the Corporations Act 2001 (Cth) s 237, to the plaintiff to bring proceedings on behalf of the first defendant in the form of the Draft Statement of Claim located at page 1 of the plaintiff's tender bundle; (2) The plaintiff to file written submissions in relation to the costs of the leave application within seven days; (3) The defendants to file written submissions in reply on costs within a further seven days.

CATCHWORDS : CORPORATIONS - derivative action - application for leave to bring proceedings in the name of a company against controlling shareholders - whether applicant is acting in good faith - whether proposed proceedings are in the best interests of the Company - whether proposed proceedings involve a serious issue to be tried - leave granted.

Corporate Law Economic Reform Program Act 1999 (Cth) Corporations Act 2001 (Cth), ss 236, 237, 242 LEGISLATION CITED : Limitation Act 1969 (NSW), ss 23, 27(2), 47(1) Real Property Act 1900 (NSW), s 42 Uniform Civil Procedure Rules 2005 (NSW), r 5.3