Bodikian v Sproule [2009] NSWSC 599

Reported Decision : 72 ACSR 598

New South Wales Supreme Court

CITATION : Bodikian v Sproule [2009] NSWSC 599

HEARING DATE(S) : 24, 25 June 2009

JUDGMENT DATE : 30 June 2009

JURISDICTION : Equity

JUDGMENT OF : Austin J

DECISION : Notices of motion dismissed

CATCHWORDS : CORPORATIONS - replaceable rules - powers to appoint directors and issue shares - formal requirements for an issue of shares - whether informal unanimous assent of shareholders is sufficient for appointment of directors and issue of shares - whether informal unanimous assent was present on the facts - ESTOPPEL - estoppel by convention and promissory estoppel - defendants represented that plaintiffs would become directors and one-third shareholders when financing arrangements were completed - later defendants treated plaintiffs as directors and required them to make one-third contributions to expenses - PRACTICE AND PROCEDURE - General Steel principles applied

LEGISLATION CITED : Corporations Act 2001 (Cth), ss 168, 169, 201G, 201H, 203C, 231, 248C, 249C, 249D, 254D, 1072G

CATEGORY : Principal judgment

Angas Law Services (in liq) v Carabelas (2005) 226 CLR 507 Foran v Wight (1989) 168 CLR 385 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Grundt v The Great Boulder Proprietary Gold Mines Ltd (1937) 59 CLR 641 Herrman v Simon (1990) 4 ACSR 81 Jorden v Money (1854) 5 HL Cas 185; 10 ER 868 CASES CITED : Legione v Hateley (1983) 152 CLR 406 Poliwka v Heven Holdings Pty Ltd (No 2) (1992) 8 ACSR 747 Re Compaction Systems Pty Ltd and the Companies Act [1976] 2 NSWLR 477 Re Duomatic Ltd [1969] 2 Ch 365 Smolarek v Liwszyc [2006] WASCA 50 Thompson v Palmer (1933) 49 CLR 507 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387