The Old Kiama Wharf Company Pty Ltd (in liquidation) v Betohuwisa Investments Pty Limited & Anor [2011] NSWSC 823

Supreme Court New South Wales

Medium Neutral Citation: The Old Kiama Wharf Company Pty Ltd (in liquidation) v Betohuwisa Investments Pty Limited & Anor [2011] NSWSC 823 Hearing dates: 12, 13, 14 & 21 July 2011 Decision date: 05 August 2011 Jurisdiction: Equity Division Before: Pembroke J Decision: See paragraph [45] Catchwords: CORPORATIONS - uncommercial transaction - whether requirement that transaction be at an undervalue - where related parties control corporate entities - whether transaction at arms length - whether transaction designed to defeat creditors - Corporations Act 2001 (Cth) Section 588FB

CORPORATIONS - voidable uncommercial transaction - voidable insolvent transaction - Corporations Act 2001 (Cth) Section 588FF

CORPORATIONS - directors - whether person "shadow director" - whether person "de-facto director" - Corporations Act 2001 (Cth) Section 9

DECLARATIONS - requirement for controversy - whether controversy need be ripe - effect as issue estoppel or res judicata - relevance to future proceedings Legislation Cited: Corporations Act 2001 (Cth) Crown Lands Act 1989 (NSW) Cases Cited: Ainsworth v Criminal Justice Commission (1992) 175 CLR 564 Demondrille Nominees Pty Ltd v Shirlaw (1997) 25 ACSR 535 Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421 Gardner v Diary Industry Authority (NSW) (1977) 52 ALJR 180 Lewis (as liq of Doran Constructions Pty Ltd (in liq)) & Anor v Doran & Ors (2005) 219 ALR 555 McDonald v Hanselmann (1998) 144 FLR 463 Re Cryan (1930) 152 A 675Corp Re Solfire Pty Ltd (in liq) (1997) 25 ACSR 160 Russian Commercial & Industrial Bank v British Bank for Foreign Trade Ltd [1921] 2 AC 438 Tosich Construction v Tosich (1997) 78 FCR 363 University of New South Wales v Moorhouse (1975) 133 CLR 1 Welcome Homes Real Estate Pty Limited & Ors v Ziade Investments Pty Limited & Anor [2007] NSWCA 167 Category: Principal judgment Parties: The Old Kiama Wharf Company Pty Ltd (in liquidation) - plaintiff Betohuwisa Investments Pty Limited - first defendant Warwick Colbron - second defendant Representation: Counsel: M J Cohen - for the plaintiff R Marshall - for the first defendant Warwick Colbron - litigant in person Solicitors: Norton Rose Australia - for the plaintiff Guardian Legal - for the first defendant Colbron & Associates - for the second defendant File Number(s): 2010/00211417