Griggs v Sorockyj Investments [2014] NSWSC 667

Griggs v Sorockyj Investments [2014] NSWSC 667

Because the defendants conceded that the plaintiff had a prima facie case that shares were held on trust for him, and because the proposed vote would be against the express wishes of the alleged beneficiary and would facilitate the appointment of Mr Sorockyj, the balance of convenience favoured interlocutory relief. However, given evidence of financial difficulty and a potential winding up risk for PBC Invest Pte Ltd, and because the relief sought was broader than the immediate problem, the injunction was confined to restraining votes in favour of the specific resolution and only until 5pm on 29 May 2014, subject to conditions.

Jurisdiction
Australia
Judgment Date
22 May 2014
Procedural Posture
Equity Division Commercial List; Interlocutory Injunction Application / Interlocutory Notice of Motion Heard Ex Tempore
Outcome
Interlocutory injunction granted on conditions; costs reserved; notice of motion adjourned.
Legal Topics
['interlocutory Injunctions' 'balance of Convenience' 'prima Facie Case' 'shareholder Voting Rights' 'alleged Trust Over Shares' 'extraordinary General Meeting']
['civil Procedure' 'equity' 'trusts' 'corporations'] ['interlocutory Injunctions' 'balance of Convenience' 'prima Facie Case' 'shareholder Voting Rights' 'alleged Trust Over Shares' 'extraordinary General Meeting']

Case Brief

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Procedural Posture

Equity Division Commercial List; Interlocutory Injunction Application / Interlocutory Notice of Motion Heard Ex Tempore

Legal Issues

  1. 1 ['Whether interlocutory injunctive relief should be granted where the defendants conceded that the plaintiff had made out a prima facie case that shares were held on trust for him.' 'Whether the balance of convenience favoured restraining the defendants from voting in favour of a resolution to appoint Mr Sorockyj as a director of ITSI.' 'Whether any injunctive relief should be limited as to subject matter and time because of evidence of financial difficulty and possible winding up risk affecting PBC Invest Pte Ltd.']

Ratio Decidendi

Because the defendants conceded that the plaintiff had a prima facie case that shares were held on trust for him, and because the proposed vote would be against the express wishes of the alleged beneficiary and would facilitate the appointment of Mr Sorockyj, the balance of convenience favoured interlocutory relief. However, given evidence of financial difficulty and a potential winding up risk for PBC Invest Pte Ltd, and because the relief sought was broader than the immediate problem, the injunction was confined to restraining votes in favour of the specific resolution and only until 5pm on 29 May 2014, subject to conditions.

Court Disposition

Interlocutory injunction granted on conditions; costs reserved; notice of motion adjourned.

Orders

  • ['The plaintiff by counsel gave the usual undertaking as to damages.' 'The defendants and each of them by themselves, their servants, agents or otherwise, were restrained up until 5pm on 29 May 2014 from voting in favour of resolution 1 proposed to be considered at the Extraordinary General Meeting of Independent...