Chen v Liu [2015] NSWSC 161

Supreme Court New South Wales

Medium Neutral Citation: Chen v Liu [2015] NSWSC 161 Hearing dates: 4 March 2015 and 5 March 2015 Decision date: 05 March 2015 Jurisdiction: Equity Division Before: McDougall J Decision: Conditional relief to be given under s 1322(4) Corporations Act; parties to bring in draft orders. Catchwords: REMEDIES – statutory remedies – Corporations Act 2001 – section 1322(4) orders – where association incorporated under the Associations Incorporation Act 2009 (NSW) – where association at deadlock between two factions vying for control – where neither side's evidence satisfactory – orders on the just and equitable ground – where each faction seeks relief under section 1322(4) – whether relief to be granted on condition that the association hold an extraordinary general meeting for the purpose of electing the committee and its office bearers – costs – whether parties entitled to recoup legal costs from accounts of the association CORPORATIONS – associations – applicability of Corporations Act 2001 to associations –fiduciary duties of office bearers – whether expending association funds on litigation to determine control of the association amounts to breach of fiduciary duties Legislation Cited: Associations Incorporation Act 2009 (NSW) Associations Incorporation Regulation 2010 (NSW) Corporations Act 2001 (Cth) Corporations (Ancillary Provisions) Act 2001 (Cth) Cases Cited: Resource Equities v Carr [2009] NSWSC 1385 Carr v Resource Equities Limited [2010] ACSR 247 Category: Principal judgment Parties: Weijie Chen (First Plaintiff) Hong Xie (Second Plaintiff) Yan Liu (First Defendant) Yugan Chen (Second Defendant) Hailun Meng (Third Defendant) Australia Fuzhou Community Alliance Incorporated (Fourth Defendant) Representation: Counsel: I J King (Plaintiffs) S A Lees (First, Second and Third Defendants)