In the matter of Optimisation Australia Pty Limited [2018] NSWSC 31

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Optimisation Australia Pty Limited [2018] NSWSC 31 Hearing dates: 1, 2, 3, 4, 8, 9, 10, 11, 14, 15, 16 March, 20 May, 14, 15, 16, 17, 21, 22 June 2016 Date of orders: 31 January 2018 Decision date: 31 January 2018 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Para 452 – plaintiff to bring in short minutes. Catchwords: CORPORATIONS – members rights and remedies – oppression – closely held company 'quasi-partnership' - where majority takes excessive benefits from company – where majority dismisses minority from employment – where minority had legitimate expectation of ongoing participation – oppression established – compulsory purchase order - valuation

CORPORATIONS – officers – directors – duties – where directors remunerate majority and their personal company at uncommercial rates in excess of those agreed with minority, for no proper corporate purpose – contraventions established

EMPLOYMENT – national employment standards – where alleged agreement to accept other benefits in lieu of annual leave and personal – held, entitlements could not be excluded

EMPLOYMENT – national employment standards – – jurisdiction – whether Supreme Court has jurisdiction to entertain claim for entitlements under national employment standards – held, it does not Legislation Cited: (CTH) Corporations Act 2001, s 79, s 180, s 181, s 182, s 232, s 233, s 236, s 237, s 1317DA, s 1317E, s 1317H (CTH) Fair Work Act 2009, s s 16(2)(c), s 21(1)(c), s 23, s 44, s 61, s 86, s 87, s 96, s 117(3), s 119(2), s 121(1)(b), s 539, s 545 (CTH) Fair Work Regulations 2009, reg 1.09, reg 1.12. (NSW) Civil Procedure Act 2005, s 146(1) (NSW) Industrial Relations Act 1996, Chap 7 Pt 2; Sch 4 Pt 18 (NSW) Industrial Relations Amendment (Industrial Court) Act 2016. Cases Cited: Australian Institute of Fitness Pty Ltd v Australian Institute of Fitness (Vic/Tas) Pty Ltd (No 3) [2015] NSWSC 1639 Bright Pine Mills Pty Ltd, Re [1969] VR 1002 D G Brims and Sons Pty Ltd, Re (1995) 16 ACSR 559 Diligenti v RWMD Operations Kelowna Ltd (1976) 1 BCLR 36 Dynasty Pty Ltd v Coombs (1995) 13 ACLC 1290 Ebrahimi v Westbourne Galleries Ltd [1973] AC 360 Ervin v Smipat Pty Ltd t/as LJ Hooker Burleigh Heads [2013] QCATA 153 ES Gordon Pty Ltd v ldameneo (No 123) Pty Ltd (1994) 15 ACSR 536 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (2001) 37 ACSR 672 Hogg v Dymock (1993) 11 ACSR 14 Joint v Stephens (2008) 26 ACLC 1,467; [2008] VSCA 210 Ledir Enterprises Pty Ltd, Re (2013) 96 ACSR 1 Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 Mopeke Pty Ltd v Airport Fine Foods Pty Ltd [2007] NSWSC 153; (2007) 61 ACSR 395 O'Neill v Phillips [1999] UKHL 24; [1999] 2 All ER 961 Optimisation Australia Pty Ltd, In the matter of [2015] NSWSC 2072 Quinn v Jack Chia (Australia) Ltd [1992] 1 VR 567 Rankin v Marine Power International Pty Ltd (2001) 107 IR 117; (2001) VSC 150 Reid v Bagot Well Pastoral Co Pty Ltd (1992) 9 ACSR 129 Roberts v Walter Developments Pty ltd (1997) 15 ACLC 882 Rogan-Gardiner v Woolworths Ltd (No 2) [2010] WASC 290 Sanford v Sanford Courier Services Pty Ltd (1986) 10 ACLR 549; 5 ACLC 394 Scottish Co-operative Society v Meyer [1959] AC 324 Short v Crawley (No 30) [2007] NSWSC 1322 Susanna Ma v Expeditors International Pty Ltd [2014] NSWSC 859. Thomas v H W Thomas Ltd [1984] 1 NZLR 686 Wayde v NSW Rugby League Ltd (1985) 180 CLR 459. Texts Cited: Duff & Phelps 2014 Valuation Yearbook. Hayes G (2008), A Practical Guide to Business Valuations for SMEs, 2nd ed. Ibbotson SBBI 2013 Valuation Yearbook. Pratt S, Business Valuation Discounts and Premiums. Sappideen C, O'Grady P, Warburton G & Eastman K, Macken's Law of Employment, 6th ed. Category: Principal judgment Parties: Brian Kearney (P) Optimisation Australia Pty Limited (D1) Gary Williams (D2) Susan Williams (D3) Sharmark Pty Limited (D4) Orchard Office Services Pty Limited (D5) Representation: Counsel: A. Fernon (P) M.P. Cleary (Ds)