Smith v Steingold [2019] NSWSC 476

Supreme Court New South Wales

Medium Neutral Citation: Smith v Steingold [2019] NSWSC 476 Hearing dates: 20 and 22 March 2019 Date of orders: 26 March 2019 Decision date: 30 April 2019 Jurisdiction: Equity - Commercial List Before: Parker J Decision: See [51] Catchwords: EQUITY – injunctions – interlocutory injunctions – prima facie case – claim of undue influence and oppressive conduct under Corporations Act 2001 (Cth) s 232 – where company advanced funds to its shareholders to fund legal proceedings – propriety of use of company resources to fund proceedings

EQUITY – injunctions – interlocutory injunctions – balance of convenience – whether restraint on company from advancing funds to shareholders would stultify the shareholders' conduct of legal proceedings – relief granted on limited terms Cases Cited: Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd [1998] NSWSC 413; 28 ACSR 688 Power v Ekstein [2010] NSWSC 137; 77 ACSR 302 Re a company (No 1126 of 1992) [1994] 2 BCLC 146 Re DG Brims & Sons Pty Ltd [1995] QSC 053; 16 ACSR 559 Re Therma Truck Pty Ltd [2016] NSWSC 266 Sandalciyan v International Development & Construction Pty Ltd [2010] FCA 1145; 80 ACSR 31 Sellar v Lasotav Pty Ltd [2008] FCA 1766 Trojan Equity Ltd v CMI Ltd [2011] QSC 346; 87 ACSR 144 Category: Procedural and other rulings Parties: Colin Steingold (First Applicant) Shadean Pty Ltd (Second Applicant) Gordana Smith (First Respondent) Paul Smith (Second Respondent) CG Partnership Pty Ltd (Third Respondent) Citrus Group Pty Ltd (Fourth Respondent) Representation: Counsel: R Glasson (First and Second Applicants) A McGrath SC (First and Second Respondents) D Pritchard SC/ A McCaulay (Third and Fourth Respondents)