In the matter of Vicad Pty Ltd - Pottie v Dunkley & ors [2011] NSWSC 166

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Vicad Pty Ltd - Pottie v Dunkley & ors [2011] NSWSC 166 Hearing dates: 8 March 2011 Decision date: 16 March 2011 Jurisdiction: Equity Division - Corporations List Before: Ward J Decision: Leave granted to plaintiff to commence derivative suit on behalf of fourth defendant against first and fifth defendants for alleged breach of fiduciary and statutory duties owed to fourth defendant Catchwords: PROCEDURE - application pursuant to s 237 of the Corporations Act to commence a derivative suit on behalf of fourth defendant against first and fifth defendants for alleged breach of fiduciary and statutory duties - HELD -once five criteria under s 237 satisfied there is no discretion - leave granted to commence derivative suit - requirement that derivative suit be commenced and continued as part of existing proceedings Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Birtchnell v. Equity Trustees, Executors and Agency Co. Ltd. [1929] HCA 24; (1929) 42 CLR 384 Boardman v Phipps [1966] UKHL 2; (1967) 2 AC 46; [1966] 3 All ER 721 Chahwan v Euphoric Pty Ltd [2008] NSWCA 52; (2008) 65 ACSR 661; 245 ALR 780 Chan v Zacharia [1984] HCA 36; (1984) 154 CLR 178 Charlton v Baber [2003] NSWSC 745; (2003) 47 ASCR 31 Gemstone Corp of Australia Ltd v Grasso (1994) 13 ACSR 695; 12 ACLC 653 Goozee v Graphic World Group Holdings Pty Ltd [2002] NSWSC 640; (2002) 42 ACSR 534 Ehsman v Nutectime International Pty Ltd [2006] NSWSC 887; (2006) 58 ACSR 705 Fiduciary Ltd v Morning Star Research Pty Ltd [2005] NSWSC 442; (2005) 53 ACSR 732; 23 ACLC 1100 Hospital Products Ltd v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 Maher v Honeysett and Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 Mulherin v Quinn Villages Pty Limited [2007] QSC 231 Power v Ekstein [2010] NSWSC 137 Ragless v IPA Holdings Pty Ltd (in liq) [2008] SASC 90; (2008) 65 ACSR 700; 254 LSJS 225 Re D G Brims & Sons Pty Ltd (1995) 16 ACSR 559 South Johnstone Mill Ltd v Dennis [2007] FCA 1448; (2007) 163 FCR 343; (2007) ACSR 447 Swansson v R A Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 Vadori v AAV Plumbing [2010] NSWSC 274; (2010) 77 ACSR 616 Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 Texts Cited: Austin & Black's Annotations to the Corporations Act Category: Procedural and other rulings Parties: Jeanette Lynn Pottie (Plaintiff) John Richard Dunkley (First Defendant) Catherine Mary Dunkley (Second Defendant) Carolyn Sue Cooper (Third Defendant) Vicad Pty Ltd (Fourth Defendant) Andrew John Dunkley (Fifth Defendant) Representation: Counsel: D A Smallbone (Plaintiff) M R Aldridge SC with R Bell (First, Second, Fourth, Fifth Defendants) Solicitors: Whiteley, Ironside & Shillington (Plaintiff) McIntosh, Emerton & Thomas (First, Second, Fourth, Fifth Defendants) Booth Brown Samuels & Olney (Third Defendant) File Number(s): 10/081224