Wyse & Young International Pty Ltd t/as Wyse & Young Accounting & Ors v Corrado [2015] NSWSC 1863

Supreme Court New South Wales

Medium Neutral Citation: Wyse & Young International Pty Ltd t/as Wyse & Young Accounting & Ors v Corrado [2015] NSWSC 1863 Hearing dates: 27 November 2015 Decision date: 27 November 2015 Jurisdiction: Equity Before: White J Decision: Security for costs ordered in sum of $81,500.00. Catchwords: CORPORATIONS – deregistration and reinstatement – application by plaintiffs for reinstatement of defendant company – whether plaintiffs are persons aggrieved by the deregistration – where company would have to be wound up immediately if it were reinstated – no evidence that the plaintiffs could expect to receive a distribution upon a winding-up – application dismissed

PRACTICE AND PROCEDURE – application by plaintiffs for freezing orders – insufficiency of mere assertions that first defendant would put assets out of reach – insufficiency of allegation that first defendant falsely claimed not to have signed certain documents – insufficiency of allegation that first defendant intended to defraud creditors – where first defendant had received property from his wife under mutual transfers of assets and liabilities, and there was no evidence of bad faith – where it was not shown that the plaintiffs had strong claims – application dismissed

PRACTICE AND PROCEDURE – security for costs – differences between UCPR r 42.21 and s 1335 of the Corporations Act – where s 1335 does not impose an evidentiary burden other than the need to adduce credible testimony – irrelevance of amount of paid-up share capital – insufficiency of solicitor's limited evidence on information and belief as to plaintiff companies' financial position – relevance of plaintiffs' limited and late response to a notice to produce – application granted Legislation Cited: Corporations Act 2001 (Cth) Family Law Act 1975 (Cth) Cases Cited: Sanna v Wyse and Young International Pty Limited (No 2) [2015] NSWSC 581 Frigo v Culhaci (17 July 1998, unreported, BC9803225) Finn v Carelli [2007] NSWSC 261 Cardile v LED Builders Pty Limited [1999] HCA 18; (1999) 198 CLR 380 GIS Electrical Pty Ltd v Melsom [2002] WASCA 302; (2002) 172 FLR 218 Truthful Endeavour Pty Limited v Condon [2015] FCAFC 70; (2015) 321 ALR 483 FFE Minerals Australia Pty Limited v Mining Australia Pty Limited [2000] WASCA 69; (2000) 22 WAR 241 Bell Wholesale Co Ltd v Gates Export Corporation (1984) 2 FCR 1 Category: Procedural and other rulings Parties: Wyse & Young International Pty Ltd (1st Plaintiff) Defined Properties Investment Pty Ltd (2nd Plaintiff) Wolgan Consulting Pty Ltd (3rd Plaintiff) Corrado Sanna (1st Defendant) DCL Construction Group Pty Ltd (2nd Defendant) DLD (NSW) Pty Ltd (Deregistered) (3rd Defendant) Domenic Sanna (4th Defendant) Paul Gerard Weston & Jason Lloyd Porter as the Trustees in Bankruptcy of Lepra Sanna (5th Defendant) Representation: Counsel: S A Lees (Defendants)