NSW Caselaw
259 ALR 574 Reported Decision : 74 ACSR 89 77 NSWLR 110
New South Wales Supreme Court
CITATION : ASIC v Somerville & Ors [2009] NSWSC 934 This decision has been amended. Please see the end of the judgment for a list of the amendments.
HEARING DATE(S) : 1, 2 & 3 September 2009
JUDGMENT DATE : 8 September 2009
JURISDICTION : Equity
JUDGMENT OF : Windeyer AJ
DECISION : Breaches of ss 181, 182 and 183 established. Involvement of solicitor established. Declarations accordingly.
CATCHWORDS : CORPORATIONS – Directors – Duties – Breach – Agreements selling assets of one company to a new company – Consideration issue of "V" class shares in purchaser company carrying preferential right to dividends up to possible value of assets – Vendor company wound up shortly after agreement settled – No dividends declared on "V" class shares – Whether breach of duties of directors – Corporations Act 2001 ss 181, 182, 183 – Transactions entered into on advice of solicitor and documents implementing transactions prepared by the solicitor – No proper consideration for sale – Whether solicitor liable as involved in the contravention – Corporations Act s 79.
LEGISLATION CITED : Corporations Act 2001 (Cth) ss 79, 181, 182 and 183 Legal Profession Act 2004 Part 2.6
CATEGORY : Principal judgment
ASIC v Adler (2002) 41 ACSR 72 ASIC v Macdonald & Ors (No 11) [2009] NSWSC 287 ASIC v Maxwell (2006) 59 ACSR 373 ASIC v Rich (2004) 50 ASCR 500 ASIC v Sydney Investment House Equities Pty Ltd (2008) 69 ALSR 1 Australian Growth Resources Corporation Pty Limited v Reesame (1988) 13 ACLR 261 Chew v R (1992) 173 CLR 626 Giorgiani v R (1985) 156 CLR 473 CASES CITED : Jones v Dunkel (1959) 101 CLR 298 Linton v Telnet Pty Ltd (1999) 30 ACSR 465 MacNamara v Flavell (1988) 13 ACLR 619 Marchesi v Barnes [1970] VR 434 Periera v Director of Public Prosecutions (1988) 63 ALR 1 Re HIH Insurance Ltd (in prov liq); ASIC v Adler (2002) 42 ACSR 80 Rosetex Co Pty Ltd v Licata (1994) 12 ACSR 779 Sycotex Pty Ltd v Bescher (1994) 13 ACSR 766 York v Lucas (1985) 185 CLR 661
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