DC Rd DC Pty Ltd v Zhang (No 3) [2024] FCA 221

DC Rd DC Pty Ltd v Zhang (No 3) [2024] FCA 221

Applicants failed to discharge the onus of proving beyond reasonable doubt that the granting of the second mortgage by Belrose COB fell outside the ordinary and proper course of business and constituted a breach of the freezing order; no contempt established. Director, as third party, cannot be liable absent proof of actual knowledge that conduct would breach the order.

Jurisdiction
Australia
Judgment Date
12 March 2024
Procedural Posture
Interlocutory Application / Judgment on Contempt Charges
Outcome
interlocutory application dismissed; contempt charges dismissed
Legal Topics
['contempt of Court' 'freezing Orders' 'ordinary and Proper Course of Business' 'director Liability' 'trustee Duties']
['corporations Law' 'commercial Law' 'civil Procedure'] ['contempt of Court' 'freezing Orders' 'ordinary and Proper Course of Business' 'director Liability' 'trustee Duties']

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Procedural Posture

Interlocutory Application / Judgment on Contempt Charges

Legal Issues

  1. 1 ['Whether Belrose COB Pty Ltd breached the freezing order and is guilty of contempt.' 'Whether the transaction (granting second mortgage) was in the ordinary and proper course of business.' 'Whether Mr Zhang, as director, can be liable for contempt as a third party to the court order.']

Ratio Decidendi

Applicants failed to discharge the onus of proving beyond reasonable doubt that the granting of the second mortgage by Belrose COB fell outside the ordinary and proper course of business and constituted a breach of the freezing order; no contempt established. Director, as third party, cannot be liable absent proof of actual knowledge that conduct would breach the order.

Court Disposition

interlocutory application dismissed; contempt charges dismissed

Orders

  • ['The interlocutory application dated 18 December 2023 be dismissed.' "The applicants pay the first and ninth respondents' costs of that interlocutory application."]