Kijurina (as liquidator of ET Family Pty Limited) v Taouk [2015] FCA 424

Kijurina (as liquidator of ET Family Pty Limited) v Taouk [2015] FCA 424

The transfers by ET Family Pty Ltd and MEA Group Pty Ltd of real properties and monies to a close associate under the direction of the director were unreasonable director-related transactions, uncommercial, and rendered both companies insolvent. The director thereby contravened statutory and fiduciary duties. Accordingly, monetary relief equal to the value of transferred assets and monies was ordered, with deductions to prevent double recovery.

Jurisdiction
Australia
Judgment Date
08 May 2015
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for the plaintiffs.
Legal Topics
['unreasonable Director Related Transactions' 'uncommercial Transactions' 'insolvent Transactions' "directors' Duties" 'fiduciary Duty' 'statutory Compensation' 'equitable Compensation' 'family Law Financial Agreements' 'voidable Transactions']
['corporations Law' 'equity' 'insolvency'] ['unreasonable Director Related Transactions' 'uncommercial Transactions' 'insolvent Transactions' "directors' Duties" 'fiduciary Duty' 'statutory Compensation' 'equitable Compensation' 'family Law Financial Agreements' 'voidable Transactions']

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Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 ['Whether the transfers of company-owned real properties and monies by a company’s director to a close associate were unreasonable director-related transactions under s 588FDA of the Corporations Act 2001 (Cth)' 'Whether such transactions were uncommercial transactions under s 588FB and/or insolvent transactions under s 588FC' 'Whether the director breached statutory and fiduciary duties under the Corporations Act 2001 (Cth)' 'Appropriate measure of relief under Corporations Act and equity']

Ratio Decidendi

The transfers by ET Family Pty Ltd and MEA Group Pty Ltd of real properties and monies to a close associate under the direction of the director were unreasonable director-related transactions, uncommercial, and rendered both companies insolvent. The director thereby contravened statutory and fiduciary duties. Accordingly, monetary relief equal to the value of transferred assets and monies was ordered, with deductions to prevent double recovery.

Court Disposition

Judgment for the plaintiffs.

Orders

  • ['Declarations that transfers of listed properties to Claire Bachour Taouk were unreasonable director-related transactions (s 588FDA), uncommercial transactions (s 588FB), and insolvent transactions (s 588FC) under the Corporations Act 2001 (Cth).' 'Declarations that the defendant breached statutory duties under ss...