Hickey v Aselford & Anor [2003] NSWSC 185

Hickey v Aselford & Anor [2003] NSWSC 185

The directors were not removed by the purported notices of dismissal, the resolution for voluntary administration was valid, the meeting was convened with reasonable notice and was not held prematurely, there was no improper delegation or encumbrance of assets, and the directors were entitled to the opinion that the company was or was likely to become insolvent.

Parties
Plaintiff: Colin Joseph Hickey; First Defendant: David Aselford; Second Defendant: James Canterbury; Third Defendant: Michael John Morris Smith
Jurisdiction
Australia
Judgment Date
20 March 2003
Procedural Posture
Summons for Declarations and Injunctions / Final Judgment at First Instance
Outcome
summons dismissed with costs
Legal Topics
Voluntary Administration, Removal of Directors, Constitution and Shareholders' Agreement, Reasonable Notice for Board Meetings, Directors' Opinion on Insolvency
Corporations Voluntary Administration Removal of Directors Constitution and Shareholders' Agreement Reasonable Notice for Board Meetings Directors' Opinion on Insolvency

Case Brief

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Parties

Colin Joseph Hickey

Plaintiff

David Aselford

First Defendant

James Canterbury

Second Defendant

Michael John Morris Smith

Third Defendant

Procedural Posture

Summons for Declarations and Injunctions / Final Judgment at First Instance

Legal Issues

  1. 1 Whether the defendants ceased to be directors upon service of notices
  2. 2 Whether the resolution for voluntary administration was void
  3. 3 Whether the meeting of directors was held prematurely

Ratio Decidendi

The directors were not removed by the purported notices of dismissal, the resolution for voluntary administration was valid, the meeting was convened with reasonable notice and was not held prematurely, there was no improper delegation or encumbrance of assets, and the directors were entitled to the opinion that the company was or was likely to become insolvent.

Court Disposition

summons dismissed with costs

Orders

  • Summons dismissed with costs