In the matter of Three Chimneys Pty Ltd (in liquidation) [2015] NSWSC 1754

In the matter of Three Chimneys Pty Ltd (in liquidation) [2015] NSWSC 1754

Leave to amend the Originating Process and to bring derivative proceedings should only be granted if the applicant offers an indemnity with sufficient monetary cap and scope to protect the company and liquidator from exposure to costs, subject to security and the opportunity for review by the liquidator and other parties. The present offer required expansion in scope to be adequate.

Jurisdiction
Australia
Judgment Date
24 November 2015
Procedural Posture
Application / Interlocutory Decision on Amendment and Leave to Bring Derivative Proceedings
Outcome
Applicant allowed short period to determine whether to offer wider indemnity; parties to be heard as to orders and costs.
Legal Topics
['derivative Proceedings' 'leave to Amend Originating Process' 'company in Liquidation' 'indemnity and Security for Costs']
['corporations Law' 'civil Procedure' 'equity'] ['derivative Proceedings' 'leave to Amend Originating Process' 'company in Liquidation' 'indemnity and Security for Costs']

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Procedural Posture

Application / Interlocutory Decision on Amendment and Leave to Bring Derivative Proceedings

Legal Issues

  1. 1 ['Whether leave should be granted to amend the Originating Process under r 19.1 of the Uniform Civil Procedure Rules 2005 (NSW)' "Whether leave should be granted in the Court's inherent jurisdiction to bring derivative proceedings on behalf of a company in liquidation" 'Adequacy and scope of the indemnity and security offered in support of such leave']

Ratio Decidendi

Leave to amend the Originating Process and to bring derivative proceedings should only be granted if the applicant offers an indemnity with sufficient monetary cap and scope to protect the company and liquidator from exposure to costs, subject to security and the opportunity for review by the liquidator and other parties. The present offer required expansion in scope to be adequate.

Court Disposition

Applicant allowed short period to determine whether to offer wider indemnity; parties to be heard as to orders and costs.

Orders

  • []