Grace v Grace (No 7) [2013] NSWSC 1745

Grace v Grace (No 7) [2013] NSWSC 1745

The line of questioning about benefits flowing from corporate control rather than from rights attached to the shares was outside the scope of the accounts ordered and was disallowed. Questions about the Accru Felsers report and member benefit balances were allowed because, in substance, they challenged the authority or propriety of payments made out of the NISF.

Jurisdiction
Australia
Judgment Date
15 October 2013
Procedural Posture
Equity Division Proceeding Concerning Accounts and Examination / Rulings on Objections During Examination After Delivery of Accounts
Outcome
Objection to the line of questioning about control-derived benefits allowed; objection to the question relating to member benefit account balance disallowed.
Legal Topics
['taking of Accounts' 'examination of Accounting Party' 'objections to Questioning' 'benefits Derived From Shares' 'superannuation Fund Trustee Accounting']
['corporations' 'equity' 'trusts'] ['taking of Accounts' 'examination of Accounting Party' 'objections to Questioning' 'benefits Derived From Shares' 'superannuation Fund Trustee Accounting']

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Procedural Posture

Equity Division Proceeding Concerning Accounts and Examination / Rulings on Objections During Examination After Delivery of Accounts

Legal Issues

  1. 1 ['Whether the plaintiff could examine the first defendant about benefits beyond dividends, including benefits said to flow from control of companies through shares.' 'Whether the plaintiff could ask questions directed to an Accru Felsers report and member benefit account balances in relation to payments from the NISF.']

Ratio Decidendi

The line of questioning about benefits flowing from corporate control rather than from rights attached to the shares was outside the scope of the accounts ordered and was disallowed. Questions about the Accru Felsers report and member benefit balances were allowed because, in substance, they challenged the authority or propriety of payments made out of the NISF.

Court Disposition

Objection to the line of questioning about control-derived benefits allowed; objection to the question relating to member benefit account balance disallowed.

Orders

  • ['The line of questioning under objection concerning benefits flowing from control of the companies was disallowed.' 'The question directed to the Accru Felsers report and member benefit account balances was allowed.']