Lucy v Prescribing Biochemists Pty Ltd [2000] NSWSC 1137

Lucy v Prescribing Biochemists Pty Ltd [2000] NSWSC 1137

The plaintiff demonstrated a proper purpose and good faith because, as executor and holder of the minority shareholding, he sought inspection to determine whether an application could or should be made concerning Robert Lucy's position as a minority shareholder; any concern about use in existing proceedings was addressed by the undertaking not to use the information in that way without leave of the Court.

Jurisdiction
Australia
Judgment Date
28 November 2000
Procedural Posture
Application Under S 247 a of the Corporations Law for Leave to Inspect Company Documents / Judgment on Application
Outcome
Order made authorising inspection.
Legal Topics
['inspection of Company Books' 'minority Shareholder Rights' 'good Faith and Proper Purpose' 'company Management and Administration']
['corporations Law' 'equity'] ['inspection of Company Books' 'minority Shareholder Rights' 'good Faith and Proper Purpose' 'company Management and Administration']

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Procedural Posture

Application Under S 247 a of the Corporations Law for Leave to Inspect Company Documents / Judgment on Application

Legal Issues

  1. 1 ["Whether the plaintiff should be granted leave under s 247A of the Corporations Law to inspect the defendants' books." 'Whether seeking information to decide whether action should be brought concerning exclusion from directorship and management is a proper purpose.' 'Whether the application was made in good faith.' 'Whether s 247A(5) applied to the application under s 247A(1).']

Ratio Decidendi

The plaintiff demonstrated a proper purpose and good faith because, as executor and holder of the minority shareholding, he sought inspection to determine whether an application could or should be made concerning Robert Lucy's position as a minority shareholder; any concern about use in existing proceedings was addressed by the undertaking not to use the information in that way without leave of the Court.

Court Disposition

Order made authorising inspection.

Orders

  • ['Upon the plaintiff by his counsel undertaking to the Court that he will not by himself his servants or agents use any information obtained under this order in any manner in relation to existing Court proceedings between the parties without the leave of the Court, order that a person nominated by the plaintiff...