Beck v Weinstock [2010] NSWSC 1068

Reported Decision : 241 FLR 235

New South Wales Supreme Court

CITATION : Beck v Weinstock [2010] NSWSC 1068

HEARING DATE(S) : 13, 14, 15, 16 September 2010

JUDGMENT DATE : 17 September 2010

JURISDICTION : Equity Division Probate List

JUDGMENT OF : Hamilton AJ

DECISION : Purported redemption of redeemable preference shares void.

CATCHWORDS : CORPORATION [1117] - Share capital - Shares - classes of shares and shareholders - Redeemable preference shares - Shares issued as redeemable prefrence shares given no preference over issued shares, only over unissued shares - No valid issue of redeemable preference shares - Purported redemption invalid.

LEGISLATION CITED : Companies Act 1961 Corporations Act 2001 (Cth)

CATEGORY : Principal judgment

CASES CITED : In re Brighton and Dyke Railway Company (1890) 44 Ch D 28 Re Capel Finance Ltd (2005) 52 ACSR 601

Ford's Principles of Company Law (14th ed, 2010 and loose leaf ed) TEXTS CITED : Halsbury's Laws of England (4th ed), Vol 7 (reissue, 1988) Halsbury's Laws of England (5th ed, 2009) Vol 15

Tamar Rivqa Beck (First Plaintiff) Alem Pty Limited (Second Plaintiff) Amiram David Weinstock (First Defendant) PARTIES : Helen Weinstock (Second Defendant) Zipor Pty Limited (Third Defendant) John Halliday (Fourth Defendant) LW Furniture Consolidaed (Aust) Pty Limited (Fifth Defendant)

FILE NUMBER(S) : SC 287773 of 2007

J Simpkins SC with him T M Thawley (Plaintiffs) COUNSEL : CRC Newlinds SC with him P Silver (First, Second and Fifth Defendants) Karl Burnett (solicitor) (Third Defendant) S Balafoutis (Fourth Defendant)