In the matter of Wan Ze Property Development (Aust) Pty Ltd [2012] NSWSC 722

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Wan Ze Property Development (Aust) Pty Ltd [2012] NSWSC 722 Hearing dates: 24 May 2012 Decision date: 29 June 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Parties to bring in agreed Short Minutes to give effect to judgment within 14 days or otherwise to bring in respective Short Minutes for which they contend and short submissions in respect of differences between them. Catchwords: CORPORATIONS - Corporations Act 2001 (Cth) s 237 - Derivative proceedings - Application by First Plaintiff to bring proceedings in the name of the Second Plaintiff - Whether matters under Corporations Act 2001 (Cth) s 237(2) are satisfied. CORPORATIONS - Winding up - Corporations Act 2001 (Cth) s 461 - Application for order that company be wound up on the just and equitable ground. PRACTICE AND PROCEDURE - Summary judgment - Application for judgment granting final relief sought in Further Amended Originating Process in circumstances that Defendants in extended default of Court's orders. EQUITY - Fiduciary duties - Claim for breach of fiduciary duty against directors of company. EQUITY - Trusts - Constructive trust - Barnes v Addy (1874) LR 9 Ch App 244 - Liability for knowing assistance - Knowing assistance - Whether there is evidence to meet knowledge requirement for knowing assistance. EQUITY - Trusts - Claim for proprietary remedy in circumstances where real property transferred to Defendants for no consideration - Whether volunteer holes property in respect of which claimant has a proprietary interest. Legislation Cited: - Civil Procedure Act 2005 (NSW) ss 56, 56-58, 59, 61, 61(3) - Corporations Act 2001 (Cth) ss 181, 181(1), 181-182, 182(1), 232, 233, 237, 237(2), 237(2)(a), 237(2)(b), 237(2)(c), 237(2)(d), 461, 461(1)(k) - Real Property Act 1900 (NSW) ss 42, 42(1) - Supreme Court (Corporations) Rules 1999 (NSW) - Uniform Civil Procedure Rules 2005 (NSW) rr 12.7, 12.7(2), 13.1, 13.1(b) Cases Cited: - Agar v Hyde [2000] HCA 41; (2000) 201 CLR 552; 173 ALR 665 - Bahr v Nicolay (No 2) [1988] HCA 17; (1988) 164 CLR 604 - Bankers Trust Co v Shapira [1980] 1 WLR 1274 - Barnes v Addy (1874) LR 9 Ch App 244 - Barrett v Sinclair v McCormack [1999] VUCA 11 - Black v S Freedman & Co [1910] HCA 58; (1910) 12 CLR 105 - Bi v Mourad [2010] NSWCA 17 - Break Fast Investments Pty Ltd v Giannopoulos (No 5) [2011] NSWSC 1508 - Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336 - Chahwan v Euphoric Pty Ltd t/as Clay & Michel [2008] NSWCA 52; (2008) 245 ALR 780; 227 FLR 43; 65 ACSR 661 - Chahwan v Euphoric Pty Ltd t/as Clay & Michel [2010] NSWSC 445 - Chahwan v Euphoric Pty Ltd t/as Clay & Michel (No 2) [2010] NSWSC 1062 - Chew v R (1991) 4 WAR 21; 5 ACSR 473 - Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225; 118 ALR 248 - Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 - Cosmos E-C Commerce Pty Ltd v Bidwell & Associates Pty Ltd [2005] NSWCA 81 - Cowern v Nield [1912] 2 KB 419 - Dey v Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 - Doyle v Australian Securities and Investments Commission [2005] HCA 78; (2005) 227 CLR 18; 223 ALR 218; 56 ACSR 159 - Dynasty Pty Ltd v Coombs (1995) 59 FCR 122; 138 ALR 64 - Edenden v Bignell [2008] NSWSC 666 - Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 - Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd [2001] NSWCA 97; (2001) 37 ACSR 672; 19 ACLC 856 - Furs Ltd v Tomkies [1936] HCA 3; (1936) 54 CLR 583 - General Steel Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125 - Gerard Cassegrain & Co Pty Ltd v Cassegrain [2011] NSWSC 1156 - Glazier Holdings Pty Ltd v Australian Men's Health Pty Ltd (No 2) [2001] NSWSC 6 - Goozee v Graphic World Group Holdings Pty Ltd [2002] NSWSC 640; (2002) 42 ACSR 534 - Heperu Pty Ltd v Belle [2009] NSWCA 252; (2009) 76 NSWLR 230 - Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (No 7) [2008] NSWSC 199; (2008) 65 ACSR 324 - Lahoud v Lahoud [2006] NSWSC 126 - Liosatos v Kefalinian Brotherhood 'O Kefalos' of NSW [2000] NSWSC 1138 - Liverpool City Council v Estephan [2009] NSWCA 161 - Long Leys Co Pty Ltd v Silkdale Pty Ltd (1991) 5 BPR 11,512 - Maher v Honeysett and Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - Meehan v Glazier Holdings Pty Ltd [2002] NSWCA 22; (2002) 54 NSWLR 146 - Micallef v ICI Australia Operations Pty Ltd [2001] NSWCA 274 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 - Nassar v Innovative Precasters Group Pty Ltd [2009] NSWSC 342; (2009) 71 ACSR 343 - Neste Oy v Lloyds Bank plc [1983] 2 Lloyd's Rep 658 - Ng v Chong [2010] NSWSC 127 - O'Neill v Phillips [1999] 1 WLR 1092 - Orix Australia Corporation ltd v Moody Kiddell & Partners Pty Ltd [2005] NSWSC 1209 - Permanent Building Society (in liq) v Wheeler (1994) 11 WAR 187; 14 ACSR 109; 12 ACLC 674 - R v Byrnes [1995] HCA 1; (1995) 183 CLR 501; 17 ACSR 551 - R v Towey (1996) 21 ACSR 46 - Re Estate of Northey (dec'd); Northey v Juul [2005] NSWSC 933 - Re Goldcorp Exchange Ltd [1995] 1 AC 74 - Re Gladstone Pacific Nickel Ltd [2011] NSWSC 1235; (2011) 86 ACSR 432 - Re HIH Insurance Ltd and HIH Casualty and General Insurance Ltd; Australian Securities and Investments Commission v Adler [2002] NSWSC 171; (2002) 168 FLR 253; 41 ACSR 72; 20 ACLC 576 - Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134; [1942] 1 All ER 378 - Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 - Showtime Management Australia Pty Ltd v Showtime Presents Pty Ltd [2008] NSWSC 618 - South Australia v Clark (1996) 66 SASR 199; 19 ACSR 606; 14 ACLC 1019 - South Johnstone Mill Ltd v Dennis [2007] FCA 1448; (2007) 163 FCR 343; 64 ACSR 447 - 7Steel Building Solutions Pty Ltd v Wright [2011] NSWSC 779 - Stocks v Wilson [1913] 2 KB 235 - Stuart v Kingston [1923] HCA 17; (1923) 32 CLR 309 - Super 1000 Pty Ltd v Pacific General Securities Ltd [2008] NSWC 1222; (2008) 221 FLR 427 - Swansson v R A Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Tomanovic v Argyle HQ Pty Ltd [2010] NSWSC 152 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2007] FCA 503; (2007) 61 ACSR 583 - Wambo Coal Pty Ltd v Ariff [2007] NSWSC 589; (2007) 63 ACSR 429 - Wayde v New South Wales Rugby League Ltd [1985] HCA 68; (1985) 180 CLR 459 - Webster v Lampard [1993] HCA 57; (1993) 177 CLR 598 - Westdeutsche Landesbank Cirozentrale v Islington London Borough Council [1996] AC 669 - Westpac Banking Corporation v Lahood [2011] NSWSC 1057 - White Constructions (ACT) Pty Ltd (in liq) v G B White [2004] NSWSC 303 - Wily v King [2010] NSWSC 352 - Zhu v Yingle Culture Exchange (Aust) Pty Ltd [2011] NSWSC 1339 Texts Cited: - P Butt, Land Law, 6th ed, Thomson Reuters, 2010 Category: Principal judgment Parties: Hong Jiang (First Plaintiff) Wan Ze Property Development (Aust) Pty Ltd (Second Plaintiff) Yongan Xie (Third Plaintiff) Ke Qin Ren (First Defendant) Pei Xu (Second Defendant) Yi Cheng Jiang (Third Defendant) Gloconnect Pty Ltd (Fourth Defendant) Representation: Counsel: D.L. Cook (Plaintiffs) T. Leung (sol.) (Defendants) Solicitors: Haworth & Lexon (Plaintiffs) Link Lawyers (Defendants) File Number(s): 11/51745