Richards, in the matter of Mount Richon Investments Pty Ltd, v Arnold [2008] FCA 509

Richards, in the matter of Mount Richon Investments Pty Ltd, v Arnold [2008] FCA 509

It was necessary for Ms Richards to commence proceedings in order to clarify and establish the parties' respective entitlements as shareholders, since Ms Arnold had not previously accepted that she held only a 5% shareholding. Thus, the Court declared the true shareholding position and ratified the correction to the register.

Jurisdiction
Australia
Judgment Date
17 April 2008
Procedural Posture
Originating Application Under S 175 of the Corporations Act 2001 (cth) / Judgment on Application and Notice of Motion
Outcome
Plaintiff's application granted; first defendant's notice of motion dismissed; costs awarded to plaintiff.
Legal Topics
['correction of Register of Members' 'shareholder Entitlements' 'company Directorship']
['corporations Law'] ['correction of Register of Members' 'shareholder Entitlements' 'company Directorship']

Case Brief

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Procedural Posture

Originating Application Under S 175 of the Corporations Act 2001 (cth) / Judgment on Application and Notice of Motion

Legal Issues

  1. 1 ['Whether it was necessary for the plaintiff to apply to the Court to correct the register of members under s 175 of the Corporations Act 2001 (Cth)' 'Whether Ms Arnold accepted before the proceeding that she was only entitled to a 5% shareholding']

Ratio Decidendi

It was necessary for Ms Richards to commence proceedings in order to clarify and establish the parties' respective entitlements as shareholders, since Ms Arnold had not previously accepted that she held only a 5% shareholding. Thus, the Court declared the true shareholding position and ratified the correction to the register.

Court Disposition

Plaintiff's application granted; first defendant's notice of motion dismissed; costs awarded to plaintiff.

Orders

  • ['Declaration that Ms Richards is, and has been since 4 September 2007, entitled to be registered on the register of members as the holder of 95 of the 100 issued shares in the second defendant and Ms Arnold as the holder of 5 of the 100 issued shares.' 'Action taken by Mr Armenti on 29 January 2008 to amend the...