Australian Securities Commission v Malumby Pty Ltd & Ors [1995] FCA 723

Australian Securities Commission v Malumby Pty Ltd & Ors [1995] FCA 723

Interim injunctive relief was justified because the evidence indicated that a large part of the cash balance obtained by mortgaging a company asset was promptly paid to Mrs. Andrews in circumstances where those with legal authority to bind the company appeared to have acted at Mr. Andrews' direction rather than on behalf of or in the interests of the company, giving rise to a possible contravention of s. 232(4) of the Corporations Law. Similar evidence justified restraining the directors, but not the company itself, from dealing with the specified land pending determination of the Australian Securities Commission's application under s. 1324(1).

Jurisdiction
Australia
Judgment Date
04 September 1995
Procedural Posture
Application for Injunctions Under S. 1324 of the Corporations Law / Interim Injunction and Leave to Amend Application
Outcome
Leave to amend the application granted and interim injunctions granted until 4.00 p.m. on 8 September, 1995 or earlier or further order.
Legal Topics
['interim Injunction Under S. 1324(4) of the Corporations Law' 'possible Contravention of S. 232(4) of the Corporations Law' 'company Directors Acting at Direction of Another Person' 'restraint on Withdrawal of Funds' 'restraint on Dealing With Company Land']
['corporations Law' 'injunctions'] ['interim Injunction Under S. 1324(4) of the Corporations Law' 'possible Contravention of S. 232(4) of the Corporations Law' 'company Directors Acting at Direction of Another Person' 'restraint on Withdrawal of Funds' 'restraint on Dealing With Company Land']

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Procedural Posture

Application for Injunctions Under S. 1324 of the Corporations Law / Interim Injunction and Leave to Amend Application

Legal Issues

  1. 1 ["Whether an interim injunction should restrain Nama Andrews from withdrawing funds held in her name pending determination of the Australian Securities Commission's intended application under s. 1324(1) of the Corporations Law." "Whether an interim injunction should restrain the directors of Malumby Pty. Ltd. from dealing with two blocks of land pending determination of the Australian Securities Commission's application under s. 1324(1) of the Corporations Law." 'Whether there was evidence of a possible contravention of s. 232(4) of the Corporations Law by the directors of Malumby Pty. Ltd.']

Ratio Decidendi

Interim injunctive relief was justified because the evidence indicated that a large part of the cash balance obtained by mortgaging a company asset was promptly paid to Mrs. Andrews in circumstances where those with legal authority to bind the company appeared to have acted at Mr. Andrews' direction rather than on behalf of or in the interests of the company, giving rise to a possible contravention of s. 232(4) of the Corporations Law. Similar evidence justified restraining the directors, but not the company itself, from dealing with the specified land pending determination of the Australian Securities Commission's application under s. 1324(1).

Court Disposition

Leave to amend the application granted and interim injunctions granted until 4.00 p.m. on 8 September, 1995 or earlier or further order.

Orders

  • ['The applicant be granted leave to amend its application to join Anna Souad Bardan and Raby Bardan as respondents to the application.' 'An interim injunction restraining Nama Andrews, whether by herself or by her servants or agents, in any way howsoever, until 4.00 p.m. on 8 September, 1995 or earlier or further...