In the matter of Central Management (NSW) Pty Ltd (in liquidation) ACN 139 989 852 [2017] NSWSC 1258

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Central Management (NSW) Pty Ltd (in liquidation) ACN 139 989 852 [2017] NSWSC 1258 Hearing dates: 5 September 2017 Decision date: 19 September 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: Judgment for the Second Plaintiff against the First Defendant in the amount of $662,923.32 and interest and against the Second Defendant in an amount to be calculated excluding impugned payments after 31 December 2010. Catchwords: CORPORATIONS — Directors and officers — Directors' duties — whether Second Defendant breached directors' duties in causing, or failing to prevent, company from making payments to its detriment – whether Second Defendant de facto director of company after ceasing to be recorded as director – whether payments recoverable against payee as loan Legislation Cited: - Corporations Act 2001 (Cth), ss 180–183, 530B, 588FDA, 588FE, 588FF, 1317H - Evidence Act 1995 (NSW), s 136 - Uniform Civil Procedure Rules 2005 (NSW), r 29.7 Cases Cited: - Australian Securities and Investments Commission v Cassimatis (No 8) [2016] FCA 1023; (2016) 336 ALR 209 - Australian Securities and Investments Commission v Drake (No 2) [2016] FCA 1552; (2016) 340 ALR 75; 118 ACSR 189 - Australian Securities and Investments Commission v Flugge [2016] VSC 779; (2016) 342 ALR 1 - Australian Securities and Investments Commission v Maxwell [2006] NSWSC 1052; (2006) 59 ACSR 373 - Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571 - Central City Pty Ltd v Montevento Holdings Pty Ltd [2011] WASCA 5 - Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296 - Hart Security Australia Pty Ltd v Boucousis [2016] NSWCA 307; (2016) 339 ALR 659; 117 ACSR 408 - NSW Trustee & Guardian v Gregory [2012] NSWSC 681 - Re ACN 092 745 330 [2017] NSWSC 241 - Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789; (2014) 101 ACSR 233 - Re FAL Healthy Beverages Pty Ltd and FAL Retail Pty Ltd [2017] NSWSC 476 - Re Swan Services Pty Ltd (in liq) [2016] NSWSC 1724 - Smirski v Macander [2010] NSWSC 929 - Vines v Australian Securities and Investments Commission [2007] NSWCA 75; (2007) 73 NSWLR 451; 62 ACSR 1 - Vrisakis v Australian Securities Commission (1993) 9 WAR 395; 11 ACSR 162 Category: Principal judgment Parties: Michael John Morris Smith in his capacity as Liquidator of Central Management (NSW) Pty Ltd (in liquidation) ACN 139 989 852 (First Plaintiff) Central Management (NSW) Pty Ltd (in liquidation) ACN 139 989 852 (Second Plaintiff) PP Hotel Investments 1 Pty Limited (First Defendant) Samuel Henderson (Second Defendant) Representation: Counsel: R D Marshall SC/H Durack (Plaintiffs)