In the matter of Global Mortgage Equity Corporation Pty Limited [2013] NSWSC 1586

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Global Mortgage Equity Corporation Pty Limited [2013] NSWSC 1586 Hearing dates: 10 - 13 September 2013 Decision date: 01 November 2013 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Judgment delivered as to quantification of value of shares for the purpose of buy-out orders. Orders made for parties to bring in agreed short minutes of order to give effect to judgment. Catchwords: CORPORATIONS - share capital - shares - valuations -where orders made by Court of Appeal provide for a valuation to be undertaken by reference to the market value of the whole share capital of the company - where conflicting expert valuation evidence - where expert evidence differed on the application of differing methodologies - whether earnings-based valuation or valuation based on unadjusted balance sheet should be applied. Legislation Cited: Corporations Act 2001 (Cth) ss 95A, 296, 307 Cases Cited: - Albany v Commonwealth (1976) 12 ALR 201 - Argus Shop Fitters Pty Ltd v Western Australian Planning Commission [2002] WASC 174; (2002) 125 LGERA 180 - Brisbane Water County Council v CSD [1979] 1 NSWLR 320 - Commercial Union v Ferrcom (1991) 22 NSWLR 389 - Davie v Lord Provost, Magistrates & Councillors of the City of Edinburgh (1953) SC 34 - Drinkwater v Caddyrack Pty Ltd [1999] NSWSC 851 - Federal Commissioner of Taxation v St Helens Farm (1981) 146 CLR 336 - Harding Investments Pty Ltd v PMP Shareholdings Pty Ltd (No 3) [2011] FCA 1370; (2011) 285 ALR 297 - Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705 - McKay v Commissioner of Main Roads [2011] WASC 223 - MMAL Rentals Pty Ltd v Bruning [2004] NSWCA 451; (2004) 63 NSWLR 167 - Re Dalkeith Investments Pty Ltd (1984) 9 ACLR 247 - Re DG Brims & Sons Pty Ltd (1995) 16 ACSR 559 - Re Quest Exploration Pty Ltd (1992) 6 ACSR 659 - Russell v Minister of Lands (1899) 17 NZLR 241 - Smith v Gould [2012] VSC 461 - Smith Martis Cook & Ragan Pty Ltd v Benjamin Cook Pty Ltd [2004] FCAFC 153 - Spencer v Commonwealth of Australia [1907] HCA 82; (1907) 5 CLR 418 - United Rural Enterprises v Lopmand [2003] NSWSC 910; (2003) 47 ACSR 514 - Tyler v Thomas [2006] FCAFC 6 Texts Cited: W Lonergan, The Valuation of Businesses, Shares and Other Equity, 4th ed Category: Principal judgment Parties: Zoltan Tomanovic (First Plaintiff) Australian Financial Services Corporation Pty Limited (Second Plaintiff) Global Mortgage Equity Corporation Pty Limited (First Defendant) One Australia Pty Limited (Second Defendant) Representation: Counsel: V.R. Gray (Plaintiffs) M.B.J. Lee SC/E. Cowpe (Defendants) Solicitors: Corporate & Civil Legal (Plaintiffs) Harris Friedman (Defendants) File Number(s): 2008/282203