Michael Jeffrey Hawksford & Ors v Brett Paul Hawksford & Ors;Brett Paul Hawksford & Ors v Michael Jeffrey Hawksford & Ors [2006] NSWSC 1458

Michael Jeffrey Hawksford & Ors v Brett Paul Hawksford & Ors;Brett Paul Hawksford & Ors v Michael Jeffrey Hawksford & Ors [2006] NSWSC 1458

The Court may, using procedural powers under State law, grant leave for both contesting directors (Michael Hawksford and Brett Hawksford) to represent deadlocked companies in the ongoing litigation, each bearing costs of their side's claims and defences, to permit the real issues to proceed to determination, and this is not inconsistent with the Corporations Act provisions relating to member remedies and representation.

Jurisdiction
Australia
Judgment Date
18 December 2006
Procedural Posture
Corporate Dispute, Shareholder/member Remedies / Interlocutory With Orders for Conduct and Representation, Directions to Hearing
Outcome
Interlocutory orders made for representation, conduct, costs, and directions; dispute not substantively resolved yet.
Legal Topics
["members' Remedies" 'corporation Representation' 'deadlock Resolution' 'leave to Bring/defend Proceedings' "court's Procedural Powers"]
['corporations Law' 'equity' 'civil Procedure'] ["members' Remedies" 'corporation Representation' 'deadlock Resolution' 'leave to Bring/defend Proceedings' "court's Procedural Powers"]

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Procedural Posture

Corporate Dispute, Shareholder/member Remedies / Interlocutory With Orders for Conduct and Representation, Directions to Hearing

Legal Issues

  1. 1 ['How to resolve deadlock in corporate representation in proceedings due to shareholders dispute.' 'Whether the Court can grant leave for directors to represent companies beyond Corporations Act mechanisms.' "Interaction of Court's procedural powers with Corporations Act provisions." 'Costs responsibility for company representation by disputing directors.']

Ratio Decidendi

The Court may, using procedural powers under State law, grant leave for both contesting directors (Michael Hawksford and Brett Hawksford) to represent deadlocked companies in the ongoing litigation, each bearing costs of their side's claims and defences, to permit the real issues to proceed to determination, and this is not inconsistent with the Corporations Act provisions relating to member remedies and representation.

Court Disposition

Interlocutory orders made for representation, conduct, costs, and directions; dispute not substantively resolved yet.

Orders

  • ['Michael Hawksford granted leave to intervene on behalf of corporate defendants Bremick and BMB in 4348/04 to defend claims by Brett Hawksford parties and to bring cross-claims; authorised to retain solicitors, conduct defence and discovery, assert privilege.' "Michael Hawksford to bear Bremick and BMB's costs for...