Fodare Pty Ltd v Shearn [2011] NSWSC 479

Supreme Court New South Wales

Medium Neutral Citation: Fodare Pty Ltd v Shearn [2011] NSWSC 479 Hearing dates: 24, 25 June 2010; 5, 6 May 2011 Decision date: 25 May 2011 Jurisdiction: Equity Division - Corporations List Before: Barrett J Decision: Short minutes to be brought in Catchwords: CORPORATIONS - directors - duties of directors - company's sole asset sold - sole director fails to account in any way for proceeds - vague statement as to part that it was used to pay unspecified debts - evidence as to another part that it was given to daughter-in-law to enable her to pay off her home mortgage - findings of breach of duty by director as to three sums - funding of "knowing receipt" by daughter-in-law as to one of these. Legislation Cited: Bankruptcy Act 1966 (Cth), s 120(2) Corporations Act 2001 (Cth), Part 2D.1 of Division 1, ss 180(1), 181(1), 182(1), 286, 344, 477(2)(m), 1317DA, 1317E, 1317H, 1317J(1) Evidence Act 1995, s 91 Uniform Civil Procedure Rules 2001, rule 35.5 Cases Cited: Baden v Societe Generale pour Favoriser le Development du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barnes v Addy (1874) LR 9 Ch App 244 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 Fodare Pty Ltd v Shearn [2010] NSWSC 737; (2010) 240 FLR 187 Giumelli v Giumelli [1999] HCA 10; (1999) 196 CLR 101 Ilhan v Ctinanovic [2009] NSWSC 160; (2009) 73 NSWLR 644 Kalls Enterprises Pty Ltd v Baloglow [2007] NSWCA 191; (2007) 63 ACSR 557 Magafas v Carantinos [2007] NSWSC 917 Peninsular and Oriental Steam Navigation Co v Johnson [1938] HCA 16; (1938) 60 CLR 189 Russell v Wakefield Waterworks Co (1875) LR 20 Eq 474 Spellson v George (1987) 11 NSWLR 300 Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2010] NSWSC 1106 Category: Principal judgment Parties: Fodare Pty Limited - Plaintiff Doris Emily Elizabeth Shearn - First Defendant Kathleen Anne Hirtzell - Second Defendant Representation: Counsel: Mr J T Johnson - Plaintiff Mr M J Cohen - Defendants Solicitors: Garland Hawthorn Brahe - Plaintiff Dignam & Hanrahan - Defendants File Number(s): 2009/00289108