In the matter of Mosman & Co Pty Limited [2019] NSWSC 1155

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Mosman & Co Pty Limited [2019] NSWSC 1155 Hearing dates: 7 February 2019 Date of orders: 05 September 2019 Decision date: 05 September 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Declaration of oppression and consequential orders: see [100] Catchwords: CORPORATIONS — Oppression — Real estate business — Members contributed equal capital but had 70/30 shareholdings — Shareholders' Agreement provided for all members to be directors — Removal of director by majority shareholder under replaceable rules — Wage and back-pay to majority shareholder's wife — Removal of access to books, records and bank accounts — sale of company's principal asset — irreconcilable differences — Whether fair offer to buy out minority interest — Oppression made out — Compulsory buy-out ordered.

CORPORATIONS — Constitution and replaceable rules — Where no constitution in evidence — Where shareholders' agreement between all members of company — No express provision displacing replaceable rules — Whether replaceable rules displaced to the extent of inconsistency — Whether the principle in Re Duomatic applicable — Not necessary to decide in oppression suit. Legislation Cited: Corporations Act 2001 (Cth), ss 134, 135, 136, 181, 182, 183, 203C, 232, 233 Cases Cited: Campbell v Backoffice Investments Pty Ltd (2008) 66 ACSR 359; [2008] NSWCA 95 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Catto v Hampton Australia Ltd (in liq) (No 3) (2004) 89 SASR 234; [2004] SASC 242 Cody v Live Board Holdings Ltd (2014) 97 ACSR 606; [2014] NSWSC 78 Fexuto Pty Ltd v Bosnjak Hodlings Pty Ltd (2001) 37 ACSR 672; [2001] NSWCA 97 In re London School of Electronics Ltd [1986] Ch 211; [1985] 3 WLR 474 Joint v Stephens (2008) 26 ACLC 1,467; [2008] VSCA 210 Mopeke Pty Ltd v Airport Fine Foods Pty Ltd (2007) 71 ACSR 395; [2007] NSWSC 153 Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692; (1987) 5 ACLC 222 Nassar v Innovative Precasters Group Pty Ltd (2009) 71 ACSR 343; [2009] NSWSC 342 Re a company (No 00709 of 1992); O'Neill v Phillips [1999] 2 All ER 961; [1999] UKHL 24 Re Duomatic [1969] 2 Ch 365; [1969] 1 All ER 161 Re R A Noble & Sons (Clothing) Ltd [1983] BCLC 273 Russell v Northern Bank Development Corp Ltd [1992] 3 All ER 161; [1992] BCLC 1016 Shamsallah Holdings Pty Ltd v CBD Refrigeration & Airconditioning Services Pty Ltd (2001) 19 ACLC 517; [2001] WASC 8 Shearwood (Trustee), in the matter of Allied Resource Partners Pty Ltd v Allied Resource Partners Pty Ltd [2017] FCA 1451 Tomanovic v Global Mortgage Equity Corp Pty Ltd (2011) 84 ACSR 121; [2011] NSWCA 104 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459; [1985] HCA 68 Texts Cited: L.S. Sealy, "The Enforcement of Partnership agreements, Articles of Association and Shareholder Agreements" in P.D. Finn, ed. Equity and Commercial Relationships (1987, The Law Book Company) Category: Principal judgment Parties: Damian Cameron (Plaintiff)