In the matter of Toppro Pty Ltd [2016] NSWSC 1399

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Toppro Pty Ltd [2016] NSWSC 1399 Hearing dates: 28, 29, 30, 31 July, 14, 15, 16 September 2015 Date of orders: 30 September 2016 Decision date: 30 September 2016 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Proceedings dismissed with costs Catchwords: CORPORATIONS – management and administration – duties and liabilities of officers of corporation – directors – other officers – duty of care – duty of good faith and proper purpose - whether director and general manager in breach of duties in authorising and making payments – where payments made otherwise than in accordance with usual procedures and controls but in furtherance of strategy instigated and endorsed by sole shareholder – relevance of role and status of employee to content of duties – relevance of shareholder approval to content of duties – held, no breach established Legislation Cited: (CTH) Corporations Act 2001, s 180, s 181, s 182 Explanatory Memorandum to the CLERP Bill 1999 Cases Cited: Angas Law Services Pty Ltd (in liq) v Carabelas (2005) 53 ACSR 208 ASC v Gallagher (1993) 11 WAR 105; 10 ACSR 43; 11 ACLC 286 ASIC v Adler [2002] NSWSC 171 ASIC v Australian Investors Forum Pty Ltd (No 2) (2005) 53 ACSR 305; [2005] NSWSC 267 ASIC v Doyle (2001) 38 ACSR 606 ASIC v Maxwell [2006] NSWSC 1052; (2006) 59 ACSR 373 Commonwealth Bank of Australia v Friedrich (1991) 5 ACSR 115 Daniels v Anderson (1995) 37 NSWLR 438 Forge v ASIC (2004) 213 ALR 574; (2004) 52 ACSR 1; (2005) 23 ACLC 1010; [2004] NSWCA 448 Furs Ltd v Tomkies (1936) 54 CLR 583; 9 ALJ 419 Hogg v Cramphorn [1967] Ch 254; [1966] 3 All ER 420 Joo v Yoo [2016] NSWCA 172 Miller v Miller (1995) 16 ACSR 73 North-West Transportation Co Ltd v Beatty (1887) 12 App Cas 589 Re City Equitable Fire Insurance Co Ltd [1925] Ch 407 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134; [1942] 1 All ER 378 Vrisakis v ASC (1993) 9 WAR 395; 11 ACSR 162 Winthrop Investments Ltd v Winns Ltd [1975] 2 NSWLR 666; (1975) 1 ACLR 219 Yoo v Toppro Pty Ltd [2016] NSWSC 670 Category: Principal judgment Parties: Toppro Pty Ltd (plaintiff) Kee Hoon Kwon (first defendant) Raphael Ahn (second defendant) Representation: Counsel: S O'Brien (plaintiff) J Young (first defendant) In person (second defendant)