In the matter of Global Advanced Metals Pty Ltd [2019] NSWSC 1804

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Global Advanced Metals Pty Ltd [2019] NSWSC 1804 Hearing dates: 5-7 and 20 November 2019 Decision date: 11 December 2019 Jurisdiction: Equity - Corporations List Before: Black J Decision: Leave not granted to Metallurg Inc to bring proceedings on behalf of Global Advanced Metals 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 has significant shareholding – where directors did not undertake further investigations to identify value in mining assets – where proposed proceedings against current directors of company – where proceedings may impact management of ongoing business – whether it is in company's best interests that plaintiff be granted leave – whether proposed proceedings involve a serious question to be tried – whether leave should be granted to plaintiff to commence proceedings on behalf of company. Legislation Cited: - Corporations Act 2001 (Cth) ss 180, 180(2), 189, 236, 237, 237(2), 237(2)(a), 237(2)(b), 237(2)(c), 237(2)(d), 237(3), 247A, 1317H, 1317S, 1318 - Evidence Act 1995 (NSW) s 136 Cases Cited: - Australian Securities and Investments Commission v Healey (2011) 196 FCR 291 - Australian Securities and Investments Commission v Lindberg [2012] VSC 332; (2012) 91 ACSR 640 - Australian Securities and Investments Commission v Rich [2009] NSWSC 1229; (2009) 236 FLR 1 - Badenach v Calvert (2016) 257 CLR 440 - Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976; (2008) 68 ACSR 132 - D'Ortenzio v Charles Parletta Real Estate Pty Ltd [2018] SASC 37 - Fiduciary Ltd v Morningstar Research Pty Ltd (2005) 53 ACSR 732 - Global Advanced Metals Pty Ltd v Metallurg Inc [2017] WASCA 188 - Great Southern Finance Pty Ltd (in liq) v Rhodes [2014] WASC 431; (2014) 103 ACSR 137 - 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 - Metallurg v Global Advanced Metals Pty Ltd [2017] WASC 212 - MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367 - MMAL Rentals Pty Ltd v Bruning [2004] NSWCA 451; (2004) 63 NSWLR 167 - 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 Fishinthenet Investments Pty Ltd [2014] NSWSC 260 - Re Gladstone Pacific Nickel Ltd [2011] NSWSC 1235; (2011) 86 ACSR 432 - Re Imperium Projects Pty Ltd [2015] NSWSC 16 - Re Legal Practice Management Group Pty Ltd [2018] NSWSC 527 - Re Sirrah Pty Ltd [2018] NSWSC 1802 - Resource Equities Ltd v Garrett [2009] NSWSC 1385 - South Johnstone Mill Ltd v Dennis (2007) 244 ALR 730 - Spencer v Commonwealth [1907] HCA 82; (1907) 5 CLR 418 - Swansson v R A Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313 - Termite Resources NL (in liq) v Meadows, in the matter of Termite Resources NL (in liq) (No 2) [2019] FCA 354 - The App Shop Pty Ltd v Jalal Brothers Pty Ltd [2019] NSWSC 490 - Vinciguerra v MG Corrosion Consultants Pty Ltd [2010] FCA 763; (2010) 79 ACSR 293 Category: Principal judgment Parties: Metallurg Inc (Plaintiff) Global Advanced Metals Pty Ltd (Defendant) Mineral Resources Limited (Interested Party) Representation: Counsel: C R C Newlinds SC/J D Williams (Plaintiff) I R Pike SC / A Shearer/T J Boyle (Defendant) A Smorchevsky (Interested Party)