Re Amazon Pest Control Pty Ltd [2016] NSWSC 609

Re Amazon Pest Control Pty Ltd [2016] NSWSC 609

Both Mr Lakis and Mr Lardis breached their fiduciary and/or statutory duties as directors of Amazon Pest Control Pty Ltd by misdescribing personal expenses as company expenses, appropriating company cash or assets for personal use without authorisation, or authorising payment of bribes from company funds. Both are liable to refund unauthorised sums to the company, with precise quantum to be determined in further proceedings or by reference to an accountant.

Parties
Plaintiff (2015/87126), Defendant (2015/89913): Edward Ted Lakis; Defendant (2015/87126), Plaintiff (2015/89913): Michael Victor Lardis; Defendant (2015/87126): PestHelp Holdings Pty Ltd
Jurisdiction
Australia
Judgment Date
12 May 2016
Procedural Posture
Corporate Fiduciary/stakeholder Dispute / Post Trial Principal Judgment; Short Minutes to Be Brought in
Outcome
Each respondent held liable—final quantum and orders to be determined; short minutes to be brought in
Legal Topics
Directors' Duties, Fiduciary Duties, Statutory Duties, Estoppel, Assignment of Claims, Company Management
Corporations Equity Directors' Duties Fiduciary Duties Statutory Duties Estoppel Assignment of Claims Company Management

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Parties

Edward Ted Lakis

Plaintiff (2015/87126), Defendant (2015/89913)

Michael Victor Lardis

Defendant (2015/87126), Plaintiff (2015/89913)

PestHelp Holdings Pty Ltd

Defendant (2015/87126)

Procedural Posture

Corporate Fiduciary/stakeholder Dispute / Post Trial Principal Judgment; Short Minutes to Be Brought in

Legal Issues

  1. 1 Did the directors (Mr Lardis and Mr Lakis) breach fiduciary and/or statutory duties owed to Amazon Pest Control Pty Ltd?
  2. 2 Were personal expenses misdescribed and unauthorised company cash misappropriated?
  3. 3 Was there liability for payment of bribes from company funds?

Ratio Decidendi

Both Mr Lakis and Mr Lardis breached their fiduciary and/or statutory duties as directors of Amazon Pest Control Pty Ltd by misdescribing personal expenses as company expenses, appropriating company cash or assets for personal use without authorisation, or authorising payment of bribes from company funds. Both are liable to refund unauthorised sums to the company, with precise quantum to be determined in further proceedings or by reference to an accountant.

Court Disposition

Each respondent held liable—final quantum and orders to be determined; short minutes to be brought in

Orders

  • Parties to bring in short minutes to quantify sums to be refunded by Mr Lardis and Mr Lakis to the company.
  • Computer property of the company to be returned by Mr Lardis to Mr Lakis (as assignee of company assets), if required.