Denis Cassegrain & Ors v Gerard Cassegrain & Co. Pty Ltd & Ors [2012] NSWSC 403

Supreme Court New South Wales

Medium Neutral Citation: Denis Cassegrain & Ors v Gerard Cassegrain & Co. Pty Ltd & Ors [2012] NSWSC 403 Hearing dates: 10, 11, 12, 13 and 14 October 2011; 7 December 2011 Decision date: 27 April 2012 Jurisdiction: Equity Division - Corporations List Before: Bergin CJ in Eq Decision: Plaintiffs entitled to relief. Cross-Claim to be dismissed Catchwords: [CORPORATIONS] - whether the transfer of shares of the corporation in two other corporations by directors to wife and daughter respectively amounted to oppression against the minority shareholders - whether notice was given - whether consent or acquiescence - whether shares transferred at undervalue.

[DIRECTORS] - Obligations in circumstances where transfer of corporation's assets are to be transferred to a family member - whether consent obtained - whether breach of statutory duties and breach of fiduciary duties.

[KNOWING RECEIPT] - where wife/daughter to whom shares transferred aware of circumstances which would indicate the facts to an honest and reasonable person - where admission that transfer was to avoid litigation and/or appointment of provisional liquidator.

[CONVEYANCING] - Conveyancing Act 1919 (NSW) - s 37A - whether alienation of shares to delay hinder or defraud creditors - where admissions that transfer was made to avoid the appointment of a provisional liquidator.

[EVIDENCE] - where plaintiffs did not give evidence - "rule" in Jones v Dunkel - whether necessity to give evidence to prove oppression under s 232 of the Corporations Act 2001 (Cth) - and/or to prove prejudice under s 37A of the Conveyancing Act 1919 (NSW) Legislation Cited: Conveyancing Act 1919 (NSW) Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Agricultural & Rural Finance Pty Limited v Gardiner [2008] HCA 57; 238 CLR 570 Atkinson v Australian Rural Group Ltd [2002] NSWSC 1232; 44 ACSR 152 Baden Delvaux & Lecuit v Societe Generale pour Favoriser le Development du Commerce [1992] 4 All ER 16 Bank of Credit & Commerce International (Overseas) Ltd v Akindele [2001] Ch 437 Barnes v Addy (1874) 9 Ch App 244 Belmont Finance Corporation v Williams Furniture Ltd (No 2) [1980] 1 All ER 393 Cassegrain v Cassegrain [1998] FCA 811; BC9803240 Cassegrain v Cassegrain [1999] NSWSC 1165 Cassegrain & Anor v CTK Engineering Pty Limited & Anor [2004] NSWSC 1068 Cassegrain & 1 Or v CTK Engineering Pty Ltd & 1 Or [2005] NSWSC 495; 54 ACSR 249 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 Denis Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976; 68 ACSR 132 Dunn v CTK Engineering Pty Ltd [2002] NSWSC 365 Ebrahimi v Westbourne Galleries [1973] AC 360 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; 230 CLR 89 Fexuto Pty Limited v Bosnjak Holdings Pty Limited [2001] NSWCA 97; 37 ACSR 672 Gerard Cassegrain & Co Pty Limited v Cassegrain [2011] NSWSC 1156 Housing Commission of NSW v Falconer & Anor [1981] 1 NSWLR 547 Jones v Dunkel (1959) 101 CLR 298 Marcolongo v Chen [2011] HCA 3; 242 CLR 546 Morgan v 45 Flers Avenue Pty Limited (1986) 10 ACLR 692 Minister for the Army v Parbury Henty & Co Pty Ltd (1945) 70 CLR 459 Re George Newman & Co [1895] 1 Ch 674 Robins v Incentive Dynamics Pty Ltd (in liq) (2003) NSWCA 71 Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) (2008) 70 ASCR 1; (2008) WASC 239 Tomanovic v Argyle Hq Pty Ltd; Tomanovic v Global Mortgage Equity Corporation Pty Ltd; Sayer v Tomanovic [2010] NSWSC 152 Category: Principal judgment Parties: Denis Cassegrain (1st Plaintiff/2nd Cross Defendant) Catherine Dunn (2nd Plaintiff/3rd Cross Defendant) Patrick Cassegrain (3rd Plaintiff/5th Cross Defendant) John Cassegrain (4th Plainitff/4th Cross Defendant) Gerard Cassegrain & Co. Pty Limited ACN 000 342 174 (1st Defendant) Claude Cassegrain (2nd Defendant/Cross Claimant) Felicity Cassegrain (3rd Defendant) Anthony Blake Sarks (4th Defendant) Expressway Spares Pty Ltd (1st Cross Defendant) Anne Marie Cameron (6th Cross Defendant) Representation: M A Ashhurst SC/ G Colyer (Plaintiffs/2nd to 5th Cross Defendants) G C Lindsay SC/ G McGrath SC/ P Bolster (2nd and 4th Defendants/ Cross Claimant) J J Garnsey QC/P J Gormly (3rd Defendant) D Stack (1st Cross Defendant) McCabe Terrill Lawyers (Plaintiff/2nd to 5th Cross Defendants) Oliveri Lawyers (1st, 2nd, 4th Defendants/Cross Claimant) Peter Condon & Associates (3rd Defendant) Thomsons Lawyers (1st Cross Defendant) File Number(s): 2008/281625 Publication restriction: Nil