Pettaras v Pettaras & Ors [2004] NSWSC 1212

Pettaras v Pettaras & Ors [2004] NSWSC 1212

There is a serious question to be tried as to whether removal of the plaintiff would breach the shareholders' agreements. The balance of convenience favours granting the injunction because if relief is refused, removal would be final and possibly defeat the plaintiff’s contractual rights, while short-term retention would not inevitably cause irreversible harm.

Parties
Plaintiff: Steven Pettaras; First Defendant: Theodore Pettaras; Second Defendant: Nicholas Pettaras; Third Defendant: Pettaras Press Pty Ltd
Jurisdiction
Australia
Judgment Date
25 November 2004
Procedural Posture
Corporations/interlocutory Application / Interlocutory Application for Injunction
Outcome
Interlocutory injunction granted
Legal Topics
Directors – Removal, Shareholders' Agreements, Injunctions – Interlocutory, Corporations – Meetings
Corporations Law Equity Directors – Removal Shareholders' Agreements Injunctions – Interlocutory Corporations – Meetings

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Parties

Steven Pettaras

Plaintiff

Theodore Pettaras

First Defendant

Nicholas Pettaras

Second Defendant

Pettaras Press Pty Ltd

Third Defendant

Procedural Posture

Corporations/interlocutory Application / Interlocutory Application for Injunction

Legal Issues

  1. 1 Whether interlocutory injunction should be granted to restrain shareholders from removing a director in breach of shareholders agreement

Ratio Decidendi

There is a serious question to be tried as to whether removal of the plaintiff would breach the shareholders' agreements. The balance of convenience favours granting the injunction because if relief is refused, removal would be final and possibly defeat the plaintiff’s contractual rights, while short-term retention would not inevitably cause irreversible harm.

Court Disposition

Interlocutory injunction granted

Orders

  • Until further order, the First and Second Defendants are restrained from acting or acquiescing in the removal of the Plaintiff as managing director or secretary of Pettaras Press Pty Ltd, including voting in favour of any such resolution at a general meeting of 26 November 2004 or any adjournment.
  • Costs of the motion reserved as costs in the proceedings.