TX Australia Pty Ltd v Network Ten Pty Ltd; Network Ten Pty Ltd v TX Australia Pty Ltd [2018] NSWSC 559

Supreme Court New South Wales

Medium Neutral Citation: TX Australia Pty Ltd v Network Ten Pty Ltd; Network Ten Pty Ltd v TX Australia Pty Ltd [2018] NSWSC 559 Hearing dates: 05 April 2018 Decision date: 01 May 2018 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Declare that the plaintiff is required by the shareholders agreement to register the transfer of the first defendant's shares in the plaintiff to the second and third defendants Catchwords: CONTRACTS – construction – shareholders agreement – mechanism for compulsory disposition to remaining shareholders or third party in certain events – whether compulsory disposal mechanism triggered – provision for expert determination of price at which shares to be purchased by remaining shareholders – whether determination can be impugned – whether expert entitled to determine methodology by which price to be determined – whether price means market value or fair and reasonable value of the shares – whether expert erred in adopting market value – whether expert made determination of the kind specified in the shareholders agreement – whether compulsory disposition mechanism void for uncertainty Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Australian Vintage Ltd v Belvino Investments No 2 Pty Ltd (2015) 90 NSWLR 367; [2015] NSWCA 275 Chartbrook Ltd v Persimmon Homes Ltd [2009] 1 AC 1101 Fitzgerald v Masters (1956) 95 CLR 420 MMAL Rentals Pty Ltd v Bruning (2004) 63 NSWLR 167; [2004] NSWCA 451 Spencer v The Commonwealth of Australia (1907) 5 CLR 418; [1907] HCA 82 State of New South Wales v Banabelle Electrical Pty Ltd (2002) 54 NSWLR 503; [2002] NSWSC 178 Triarno Pty Ltd v Triden Contractors Ltd (1992) 10 BCL 305 Category: Principal judgment Parties: TX Australia Pty Ltd (Plaintiff/First Cross-Defendant) Network Ten Pty Limited (First Defendant/Cross-Claimant) Nine Network Australia Pty Limited (Second Defendant/Cross-Defendant) Seven Network (Operations) Limited (Third Defendant/Cross-Defendant) Representation: Counsel: A S Bell SC with D F C Thomas (Plaintiff/First Cross-Defendant) A Leopold SC with A Hochroth (First Defendant/Cross-Claimant) K Williams SC with R Mansted (Second Defendant/Cross-Defendant) D Sulan (Third Defendant/Cross-Defendant)