Corporations Case Law Update: 5 June 2012

Following are brief notes of Re Cheal Industries Pty Ltd - Fitzpatrick v Cheal [2012] NSWSC 595 (1 June 2012); Re Gemaveld Pty Ltd [2012] NSWSC 582 (31 May 2012) and Inglewood Farms Pty Ltd v AM No. 1 Pty Ltd (administrators appointed) (No 2) [2012] NSWSC 591 (29 May 2012) as follows:

In Re Cheal Industries Pty Ltd - Fitzpatrick v Cheal [2012] NSWSC 595 (1 June 2012) the NSW Supreme court dealt with a claim for  equitable compensation for oppressive conduct by defendants pursuant to Corporations Act 2001 (Cth) s 232 with respect to the value of goodwill associated with use of a company name.  Parties elected for the Court to determine the nominal value. Held: the relief granted for oppressive conduct may be fashioned so as to compensate the oppressed party. The method of valuation may be adapted to the dictates of fairness in the circumstances and the determination of nominal value is not a strictly mathematical exercise, but involves an element of intuition

In Re Gemaveld Pty Ltd [2012] NSWSC 582 (31 May 2012) the New South Wales Supreme Court in dealing with an application to set aside winding up and statutory demand under Corporations Act 2001 (Cth) s 459J considered whether a verifying affidavit was sworn prior to statutory demand and whether an affidavit sworn prior to, but on same day as, the signature of statutory demand would give rise to some other reason why statutory demand should be set aside. Other provisions discussed were Corporations Act 2001 (Cth) Pt 5.4, ss 459C, 459E, 459E(2)(e), 459E(3), 459F(2), 459G, 459H.

In Inglewood Farms Pty Ltd v AM No. 1 Pty Ltd (administrators appointed) (No 2) [2012] NSWSC 591 (29 May 2012) the New South Wales Supreme Court again dealing with a winding up under the Corporations Act 2001 (Cth) s 440A(2) considered an application for the adjournment of the winding up application and  the relevant factors as to whether the application should be adjourned. Other provisions discussed were Corporations Act 2001 (Cth) ss 440A(2), 440C, 467.

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