In the Matter of Lesvos Pty Ltd [2012] NSWSC 1288

Supreme Court New South Wales

Medium Neutral Citation: In the Matter of Lesvos Pty Ltd [2012] NSWSC 1288 Hearing dates: 25 September 2012 Decision date: 25 September 2012 Jurisdiction: Equity Division - Corporations List Before: Brereton J Decision: Declaration that certain transaction entered into by plaintiff company was an unreasonable director related transaction; order defendants to repay sum of $70,000 together with interest to plaintiffs; defendants to pay plaintiffs' costs Catchwords: CORPORATIONS - external administration - unreasonable director related transactions - voidable transactions - Corporations Act, s 588FDA - Corporations Act, s 588FE - Corporations Act, s 588FF - whether transactions benefited company - where funds applied to recover funds expended by directors on legal fees on behalf of company - where funds applied by directors to repay director's mortgage - whether transactions benefited company - whether reasonable person in the company's circumstances would not have entered into transactions Legislation Cited: (Cth) Corporations Act 2001, Pt. 5.7B, s 588FDA, 588FE, 588FF (NSW) Civil Procedure Act 2005, s 100 Category: Principal judgment Parties: Lesvos Enterprises Pty Limited (In Liq) ACN 078 840 338 - First Plaintiff Mitchell Warren Ball - Second Plaintiff Maria Alexiou - First Defendant Arthur Alexiou - Second Defendant Representation: Counsel: J Hynes - Plaintiffs J Jobson - Defendants Solicitors: Gadens Lawyers - Plaintiffs Andresakis & Associates - Defendants File Number(s): 2011/ 273971