BI Constructions Pty Ltd v Shad & Anor; Bayeh v BI Constructions Pty Ltd [2010] NSWSC 484

New South Wales Supreme Court

CITATION : BI Constructions Pty Ltd v Shad & Anor; Bayeh v BI Constructions Pty Ltd [2010] NSWSC 484 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 9, 12 & 17 March 2010 & 16 April 2010

JUDGMENT DATE : 18 May 2010

JURISDICTION : Equity

JUDGMENT OF : Slattery J at 1

ORDERS: a) The trust proceedings are stayed for 21 days. DECISION : b) Direct the parties to the trust proceedings bring in a management plan within 21 days in accordance this judgment. c) Make orders 1 and 2 on Mr Barrak's motion of 17 March 2010. d) Grant liberty to apply.

CATCHWORDS : PROCEDURE - challenge to retainer of solicitors of corporate plaintiff - alleged defect in resolution to commence proceedings - CORPORATIONS - removal of director by meeting of the board - constitution and replaceable rules only authorise removal of director by a meeting of members - HELD - director's removal invalid - no proper notice given of meeting to authorise commencement of the proceedings - no valid retainer of solicitors for the plaintiff

LEGISLATION CITED : Corporations Act ss 203C, 243C, 248C, 249H, 249J, 1322 Legal Profession Act 2004 (NSW) s 728

CATEGORY : Principal judgment

Brown v DML Resources Pty Ltd (No 6) (in liq) (2002) 166 FLR 393 Hawksford v Hawksford (2005) 191 FLR 173 CASES CITED : Poliwka v Heven Holdings Pty Limited (1992) 7 ACSR 85 Re Chevron Furnishers Pty Ltd (in liq) [1994] 2 Qd R 475 Re PW Saddington & Sons Pty Ltd (1990) 19 NSWLR 674 Re Pembury Pty Limited [1993] 1 Qd R 125