The App Shop Pty Ltd v Jalal Brothers Pty Ltd [2019] NSWSC 490

Supreme Court New South Wales

Medium Neutral Citation: The App Shop Pty Ltd v Jalal Brothers Pty Ltd [2019] NSWSC 490 Hearing dates: 26 March 2019; 15 April 2019 Date of orders: 18 April 2019 Decision date: 01 May 2019 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave granted to The App Shop Pty Ltd to bring proceedings on behalf of Pixl Pty Ltd under s 237 of the Corporations Act 2001 (Cth). Catchwords: CORPORATIONS – statutory derivative action – application by plaintiff to bring proceedings on behalf of company – where plaintiff provides undertakings as to the company's costs of conducting the proceedings – where defendant accepts that the proposed claim generally is seriously arguable – whether it is in the company's best interests that the plaintiff be granted leave – whether the proposed proceedings involve a serious question to be tried – whether leave should be granted to plaintiff to commence proceedings. Legislation Cited: - Corporations Act 2001 (Cth) ss 237, 237(2), 237(2)(a), 237(2)(b), 237(2)(c), 237(2)(d) Cases Cited: - Blakeney v Blakeney [2016] WASCA 76; (2016) 113 ACSR 398 - Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976; (2008) 68 ACSR 132 - 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 Limited [2012] NSWSC 462 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - Oates v Consolidated Capital Services Pty Ltd [2009] NSWCA 183; (2009) 76 NSWLR 69 - Power v Ekstein [2010] NSWSC 137; (2010) 77 ACSR 302 - Re Akierman Holdings Pty Ltd [2015] NSWSC 1395 - 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 Legal Practice Management Group Pty Ltd [2018] NSWSC 527 - Re Mycorp Group Pty Ltd [2013] NSWSC 1344 - Swansson v R A Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 Category: Procedural and other rulings Parties: The App Shop Pty Ltd (Plaintiff) Jalal Brothers Pty Ltd (Defendant) Representation: Counsel: D Studdy SC/D Smith (Plaintiff) S Keizer (Defendant)