Transmetro Corp Ltd v Kol Tov Pty Ltd [2009] NSWSC 350

Reported Decision : 71 ACSR 582

New South Wales Supreme Court

CITATION : Transmetro Corp Ltd v Kol Tov Pty Ltd [2009] NSWSC 350

HEARING DATE(S) : 21/04/09

JUDGMENT DATE : 5 May 2009

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Barrett J

DECISION : Application for leave to bring derivative action refused.

CATCHWORDS : CORPORATIONS - statutory derivative action - application for leave to bring on company's behalf second cross-claim in existing proceedings - where company is a defendant in those proceedings and applicant for leave is a director of the plaintiffs - applicant bound as director of plaintiffs to contend for position inconsistent with that sought to be established through company's cross-claim - conflict of duties - not in best interests of company that applicant should have leave - application not objectively in good faith

LEGISLATION CITED : Corporations Act 2001, ss 236(1)(a)(i), 236(1)(a)(ii), 237

CATEGORY : Principal judgment

Chahwan v Euphoric Pty Ltd [2008] NSWCA 52; (2008) 65 ACSR 661 Joinery Products Pty Ltd v Imlach [2008] TASSC 40; (2008) 67 ACSR 520 CASES CITED : Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 Metyor Inc v Queensland Electronic Switching Pty Ltd [2002] QCA 269; [2003] 1 QdR 186 Ragless v IPA Holdings Pty Ltd [2008] SASC 90; (2008) 65 ACSR 7 Swansson v R A Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313

Transmetro Corporation Limited - First Plaintiff Metro Hotel Sydney Pty Ltd - Second Plaintiff Kol Tov Pty Limited - First Defendant PARTIES : Kol Tov Operations Pty Limited - Second Defendant John Albert Christopher McEvoy - Applicant Benjamin Saul Caplan - First Respondent Phillip William Leslie - Second Respondent Warren Richard Lesnie - Third Respondent