Leawell Pty Ltd as Trustee for the Garton Smith Trust, in the matter of Watershed Premium Wines Ltd v Watershed Premium Wines Ltd [2009] FCA 26

Leawell Pty Ltd as Trustee for the Garton Smith Trust, in the matter of Watershed Premium Wines Ltd v Watershed Premium Wines Ltd [2009] FCA 26

The interim injunction was granted because there is a serious question to be tried regarding contravention of s 208(1) and undervalue issue, irreparable harm would result absent injunctive relief, and the statutory purpose of s 1324(4) favours granting an injunction to prevent possible breach and loss of enforceable rights.

Jurisdiction
Australia
Judgment Date
21 January 2009
Procedural Posture
Application for Interim Injunction / Interlocutory (interim Relief Pending Determination)
Outcome
Interim injunction granted restraining acceptance of shareholder offers and issue/allotment of shares pending determination of substantive application.
Legal Topics
['interim Injunction' 'directors’ Duties' 'statutory Remedies' 'financial Benefit to Related Parties' 'shareholder Oppression']
['corporations Law'] ['interim Injunction' 'directors’ Duties' 'statutory Remedies' 'financial Benefit to Related Parties' 'shareholder Oppression']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application for Interim Injunction / Interlocutory (interim Relief Pending Determination)

Legal Issues

  1. 1 ['Whether granting an interim injunction under s 1324(4) of the Corporations Act 2001 (Cth) is warranted' 'Whether the directors’ actions threaten breach of s 208(1) and related directors’ duties provisions' 'Whether issuing shares at undervalue and discriminatory offer constitutes financial benefit to related parties' 'Whether applicants would suffer irreparable harm absent interim relief']

Ratio Decidendi

The interim injunction was granted because there is a serious question to be tried regarding contravention of s 208(1) and undervalue issue, irreparable harm would result absent injunctive relief, and the statutory purpose of s 1324(4) favours granting an injunction to prevent possible breach and loss of enforceable rights.

Court Disposition

Interim injunction granted restraining acceptance of shareholder offers and issue/allotment of shares pending determination of substantive application.

Orders

  • ['The time for hearing abridged.' 'Orders made on 15 January 2009 revoked/vacated.' 'First respondent restrained from accepting offers or issuing shares in relation to Offer Information Statement dated 24 December 2008 until further order.' 'Liberty to apply to vary/set aside order on 48 hours notice.' 'Costs be in...