Sign up to save your podcasts
Or
Share In the matter of Candy-Vend Pty Limited [2020] NSWSC 1735
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
In the matter of Candy-Vend Pty Limited [2020] NSWSC 1735
“No oppression? No relief.”
___
A Co had 5 shareholders, all brothers, and owned some property.
Two brothers, the Ps, said the conduct of the Co was oppressive and sought relief.
They had a number of complaints. One was about about dividends not being paid.
In fact, dividends (in the form of reduced loans) were paid. But even if they were not it would not be oppressive: the Co held substantial property expected to increase in value, and in any case an absence of dividends would be evenly shared across all shareholders: [41]
The narrowness of the company’s affairs (merely owning a property) meant the lack of trust between parties was not oppressive: [46], [47]
The plaintiffs valued the Co with all loans including those owed by the Ps (thus increasing its value). The Co claimed those loans in an XC. The Ps said that was oppressive.
Where the Ps used the loans to increase the value of the Co, it was not oppressive for the Co to seek payment: [50]
Even if there had been oppression, the Court considered the “property relief” was not appropriate: [52], [53]
Not all the shareholders were joined to the claim meaning while the Court might have the power to wind up, it shouldn’t as a matter of procedural fairness: [54]
The oppression claim failed.
If you'd like to contact me my socials are: https://www.linkedin.com/company/coff... https://www.youtube.com/channel/UCzo6... https://www.instagram.com/coffeeandac... https://www.facebook.com/CoffeeandaCa... https://podcasts.apple.com/au/podcast... https://twitter.com/coffeeandacase1?l...
View all episodes
By James d'Apice
5
22 ratings
“No oppression? No relief.”
___
A Co had 5 shareholders, all brothers, and owned some property.
Two brothers, the Ps, said the conduct of the Co was oppressive and sought relief.
They had a number of complaints. One was about about dividends not being paid.
In fact, dividends (in the form of reduced loans) were paid. But even if they were not it would not be oppressive: the Co held substantial property expected to increase in value, and in any case an absence of dividends would be evenly shared across all shareholders: [41]
The narrowness of the company’s affairs (merely owning a property) meant the lack of trust between parties was not oppressive: [46], [47]
The plaintiffs valued the Co with all loans including those owed by the Ps (thus increasing its value). The Co claimed those loans in an XC. The Ps said that was oppressive.
Where the Ps used the loans to increase the value of the Co, it was not oppressive for the Co to seek payment: [50]
Even if there had been oppression, the Court considered the “property relief” was not appropriate: [52], [53]
Not all the shareholders were joined to the claim meaning while the Court might have the power to wind up, it shouldn’t as a matter of procedural fairness: [54]
The oppression claim failed.
If you'd like to contact me my socials are: https://www.linkedin.com/company/coff... https://www.youtube.com/channel/UCzo6... https://www.instagram.com/coffeeandac... https://www.facebook.com/CoffeeandaCa... https://podcasts.apple.com/au/podcast... https://twitter.com/coffeeandacase1?l...
More shows like Coffee and a Case Note
View all
Background Briefing
68 Listeners
All In The Mind
757 Listeners
Law Report
23 Listeners
Conversations
862 Listeners
Rear Vision — How History Shaped Today
69 Listeners
The Economy, Stupid
18 Listeners
Australian Politics
51 Listeners
Betoota Talks
32 Listeners
If You're Listening
314 Listeners
7am
143 Listeners
What's That Rash?
243 Listeners
The Briefing
51 Listeners
The Front
40 Listeners
Chanticleer
18 Listeners
The Fin
19 Listeners