In the matter of Dungowan Manly Pty Limited [2015] NSWSC 225

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Dungowan Manly Pty Limited [2015] NSWSC 225 Hearing dates: 11 March 2015 Date of orders: 11 March 2015 Decision date: 11 March 2015 Jurisdiction: Equity Division - Corporations List Before: Brereton J Decision: Liquidator's application for approval of compromise and revocation of leave to bring derivate action dismissed with costs Catchwords: CORPORATIONS – external administration – winding up – liquidator's applications – for directions – for approval of compromise – where leave granted for creditor to bring derivative action against shareholders – where hearing of derivative action imminent – where liquidator negotiates settlement of derivative action but not all necessary parties to settlement have assented to it – where approval would sacrifice hearing at risk that there would be no settlement – where majority of creditors oppose application – application dismissed Legislation Cited: (Cth) Corporations Act 2001, s 477(2A), (2B), s 511 Cases Cited: In the matter of Dungowan Manly Pty Ltd (in liquidation) [2014] NSWSC 856 In the matter of Dungowan Manly Pty Ltd (in liquidation) [2014] NSWSC 1721 Category: Principal judgment Parties: Adam Farnsworth (in his capacity as liquidator of Dungowan Manly P/L) (first plaintiff) Dungowan Manly Pty Ltd (second plaintiff) Patrick David McLaughlin (first defendant) Jennifer Therese McLaughlin (second defendant) Turner Freeman Lawyers (third defendant) Cross-Claim: Patrick David McLaughlin (first cross-claimant) Jennifer Therese McLaughlin (second cross-claimant) Adam Farnsworth (first cross-defendant) Turner Freeman Lawyers (second cross-defendant) Loafer Pty Ltd (third cross-defendant) Peter William Brown (fourth cross-defendant) Louise Jane Brown (fifth cross-defendant) Garmen Pty Ltd (sixth cross-defendant) Representation: Counsel: S Golledge (plaintiffs) Mr D McLaughlin (first defendant & first cross-claimant on first cross-claim) Mrs J T McLaughlin (second defendant/second cross-claimant on first cross-claim) Mr S J Philips (third defendant/cross-claimant on second cross-claim) Ms B K Nolan (third and sixth cross-defendants on first cross-claim)