In the matter of Allco Securities Pty Limited [2011] NSWSC 1113

In the matter of Allco Securities Pty Limited [2011] NSWSC 1113

The appointment of a receiver was just and convenient because the plaintiffs showed a serious question to be tried that the Unique World shares were held on trust for them, Allco Securities had no directors and could not function or discharge any trustee responsibilities, and the shares therefore needed to be placed under the control of the Court pending determination by the Court of beneficial ownership, with the plaintiffs required to amend their originating process to claim final declaratory relief.

Jurisdiction
Australia
Judgment Date
15 September 2011
Procedural Posture
Equity Division Corporations List Application for Appointment of Receiver Over Shares / Interlocutory Application; Orders Made on 15 September 2011
Outcome
Receiver appointed until further order over the Unique World shares registered in the name of Allco Securities; plaintiffs directed to serve an amended originating process claiming final declaratory relief; costs reserved.
Legal Topics
['receivership' 'interlocutory Relief' 'trust Assets' 'beneficial Ownership of Shares' 'corporate Paralysis' 'power of Sale']
['equity' 'corporations'] ['receivership' 'interlocutory Relief' 'trust Assets' 'beneficial Ownership of Shares' 'corporate Paralysis' 'power of Sale']

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Procedural Posture

Equity Division Corporations List Application for Appointment of Receiver Over Shares / Interlocutory Application; Orders Made on 15 September 2011

Legal Issues

  1. 1 ["Whether a receiver should be appointed over shares in Unique World Group Pty Ltd registered in the name of Allco Securities Pty Ltd pending determination of the plaintiffs' claimed beneficial ownership." "Whether the plaintiffs' originating process needed to articulate a claim for final relief by declaration as to beneficial ownership of the shares." 'Whether it would be appropriate for the receiver to determine beneficial entitlements to the shares.' 'Whether the receiver should be given a power of sale.']

Ratio Decidendi

The appointment of a receiver was just and convenient because the plaintiffs showed a serious question to be tried that the Unique World shares were held on trust for them, Allco Securities had no directors and could not function or discharge any trustee responsibilities, and the shares therefore needed to be placed under the control of the Court pending determination by the Court of beneficial ownership, with the plaintiffs required to amend their originating process to claim final declaratory relief.

Court Disposition

Receiver appointed until further order over the Unique World shares registered in the name of Allco Securities; plaintiffs directed to serve an amended originating process claiming final declaratory relief; costs reserved.

Orders

  • ["The Court directs the plaintiffs to serve an amended Originating Process by 4pm on 20/9/11 claiming final relief by way of declaration as to the plaintiffs' beneficial ownership of the Shares as hereinafter defined." 'Mr Ron Dean-Willcocks be appointed until further order as Receiver over the shares in Unique...