Law Society v Milios [1999] NSWSC 1272

Because of the complete severance in time and factual circumstances between the acquisition of shares by Vacentia in Speedy Gantry and the proposed loan from Speedy Gantry to Vacentia to fund settlement of the receiver's claim, s 260A of the Corporations Law does not apply—the transaction is not financial assistance to acquire shares.

Parties: Plaintiff/applicant: Law Society of New South Wales; Defendant: Nicholaos Milios; Respondent: Vacentia Pty Ltd
Jurisdiction: Australia
Judgment Date: 15 December 1999
Procedural Posture: Application for Directions by Receiver / Judgment on Application for Directions
Outcome: Application for directions granted.
Legal Topics: Financial Assistance, Company Shares, Receiver Directions

Corporations Law Equity Financial Assistance Company Shares Receiver Directions

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 4

Parties

Law Society of New South Wales

Plaintiff/applicant

Nicholaos Milios

Defendant

Vacentia Pty Ltd

Respondent

Procedural Posture

Application for Directions by Receiver / Judgment on Application for Directions

Legal Issues

1 Whether s 260A of the Corporations Law applies to a settlement payment funded by a company loan years after the acquisition of its shares by a shareholder.

Ratio Decidendi

Court Disposition

Application for directions granted.

Orders

Receiver is justified in entering into and completing the settlement transaction as proposed in the evidence.