FOYSTER v FOYSTER HOLDINGS [2002] NSWSC 768

FOYSTER v FOYSTER HOLDINGS [2002] NSWSC 768

There was no reasonably arguable cause of action against the seventh defendant; passive receipt of representations is insufficient for liability for contravention, and only ASIC may seek a declaration of contravention under s.1317E.

Jurisdiction
Australia
Judgment Date
26 August 2002
Procedural Posture
Corporations (equity Division) / Interlocutory Application for Summary Dismissal Against Seventh Defendant
Outcome
Originating process against seventh defendant dismissed; costs awarded on indemnity basis.
Legal Topics
['breach of Statutory Duty' "director's Duties" 'declarations of Contravention' 'standing to Apply for Civil Penalties']
['corporations Law'] ['breach of Statutory Duty' "director's Duties" 'declarations of Contravention' 'standing to Apply for Civil Penalties']

Case Brief

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Procedural Posture

Corporations (equity Division) / Interlocutory Application for Summary Dismissal Against Seventh Defendant

Legal Issues

  1. 1 ['Whether passive receipt of representations constitutes involvement in breach of statutory duty under ss.182 and 183 of Corporations Act' 'Whether plaintiff has standing to seek declaration of contravention under s.1317E of Corporations Act']

Ratio Decidendi

There was no reasonably arguable cause of action against the seventh defendant; passive receipt of representations is insufficient for liability for contravention, and only ASIC may seek a declaration of contravention under s.1317E.

Court Disposition

Originating process against seventh defendant dismissed; costs awarded on indemnity basis.

Orders

  • ['Proceedings against seventh defendant dismissed.' "Plaintiff to pay seventh defendant's costs of application and proceedings on indemnity basis." "Seventh defendant's costs may be assessed and are payable forthwith."]