In the matter of Legal Practice Management Group Pty Ltd, nSynergy Pty Ltd, nSynergy International Pty Ltd [2018] NSWSC 527

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Legal Practice Management Group Pty Ltd, nSynergy Pty Ltd, nSynergy International Pty Ltd [2018] NSWSC 527 Hearing dates: 14 September 2017, 22 March 2018, last submissions 11 April 2018 Decision date: 27 April 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave for the Applicants to bring proposed derivative proceedings under s 237 of the Corporations Act 2001 (Cth) is granted. Parties to bring in short minutes of order to give effect to this judgment and question of costs to be determined. Catchwords: CORPORATIONS – membership, rights and remedies – derivative action – application for grant of leave by shareholders to bring derivative proceedings in name of companies under Corporations Act 2001 (Cth) s 237 – whether applicants acting in good faith in bringing proceedings – whether in the best interests of companies that applicants be granted leave – whether proposed proceedings involved serious questions to be tried – indemnity. Legislation Cited: - Civil Procedure Act ss 56, 98 - Corporations Act 2001 (Cth) ss 9, 180, 181, 182, 233, 236, 237, 237(1), 237(2), 237(2)(a), 237(2)(b), 237(2)(c), 237(2)(d), 237(2)(e), 241, 242, 1317H, 1317K - Federal Court of Australia Act 1976 (Cth) s 37N Cases Cited: - Blue Oil Energy Pty Ltd v Tan [2014] NSWSC 81 - Campbell's Cash and Carry Pty Ltd v Fostif Pty Ltd (2006) 229 CLR 386 - Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 1159 - Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976; (2008) 68 ACSR 132 - DIF III Global Co-Investment Fund LP v VBLP LLC [2016] VSC 401 - Ehsman v Nutectime International Pty Ltd [2006] NSWSC 887; (2006) 56 ACSR 705 - Fitzpatrick v Cheal [2012] NSWSC 261 - Fostif Pty Ltd v Campbells Cash and Carry Pty Ltd (2005) 63 NSWLR 203 - Gerace v Auzhair Supplies Pty Ltd (in liq) [2014] NSWCA 181; (2014) 87 NSWLR 435; 100 ACSR 465 - Hannon v Doyle [2011] NSWSC 10; (2011) 82 ACSR 259; - Huang v Wang [2016] NSWCA 164 - Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 - Mathews Capital Partners Pty Limited v Coal of Queensland Holdings Pty Limited [2012] NSWSC 462 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - Oates v Consolidated Capital Services Ltd [2009] NSWCA 183; (2009) 76 NSWLR 69 - Patterson and Ors v Humphrey and Ors (2014) 291 FLR 246 - Petersen Superannuation Fund Pty Ltd v Bank of Queensland Ltd [2017] FCA 699 - Power v Ekstein [2010] NSWSC 137; (2010) 77 ACSR 302 - Re DH International Pty Ltd (in liq) [2017] NSWSC 870 - Re Fishinthenet Investments Pty Ltd and Coastal Waters Seafood Pty Ltd [2014] NSWSC 260 - Re Gladstone Pacific Nickel Ltd [2011] NSWSC 1235; (2011) 86 ACSR 432 - Re Imperium Projects Pty Limited [2015] NSWSC 16 - Re Imperium Projects Pty Limited [2015] NSWSC 123 - Re Imperium Projects Pty Limited [2015] NSWSC 141 - Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Vadori v AAV Plumbing Pty Ltd (2010) 77 ACSR 616 - Victory Projects Pty Ltd v AAA Self Storage Pty Ltd [2016] NSWSC 1758 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2007] FCA 503; (2007) 61 ACSR 583 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 - Walsh v Worleyparsons Ltd (No 4) [2017] VSC 292 Category: Principal judgment Parties: Keith Stewart Alistair Redenbach (First Applicant) Campbell Jeffrey Ray (Second Applicant) Legal Practice Management Group Pty Ltd (First Respondent) nSynergy Pty Ltd (Second Respondent) nSynergy International Pty Ltd (Third Respondent) Representation: Counsel: N Hutley SC/M Karam (Applicants) Dr R C A Higgins SC (14.9.17, 22.3.18)/A J H O'Brien (14.9.17) (Respondents)