Sutton Developments Pty Ltd v Nine West Melbourne Pty Ltd [2006] FCA 338

Sutton Developments Pty Ltd v Nine West Melbourne Pty Ltd [2006] FCA 338

The conditions for granting leave under s 237 Corporations Act 2001 (Cth) are satisfied: written notice was given, the applicant acts in good faith, it is in the best interest of Nine West Australia, and there is a serious question to be tried. The Court accepts the undertakings and makes consent orders allowing Sutton Developments Pty Ltd to proceed in the name and on behalf of Nine West Australia Pty Limited.

Jurisdiction
Australia
Judgment Date
22 February 2006
Procedural Posture
Corporations Law / Final Determination on Application for Leave
Outcome
leave granted by consent subject to undertakings; respondent's stay motion dismissed; no order as to costs; liberty to apply reserved
Legal Topics
['leave to Commence Proceedings in Name of Another Company' 'statutory Derivative Action' 'undertakings and Indemnities']
['corporations Law'] ['leave to Commence Proceedings in Name of Another Company' 'statutory Derivative Action' 'undertakings and Indemnities']

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Procedural Posture

Corporations Law / Final Determination on Application for Leave

Legal Issues

  1. 1 ['whether statutory conditions under s 237 of the Corporations Act 2001 (Cth) are satisfied for granting leave' 'appropriateness of court accepting undertakings relating to proceedings in another court']

Ratio Decidendi

The conditions for granting leave under s 237 Corporations Act 2001 (Cth) are satisfied: written notice was given, the applicant acts in good faith, it is in the best interest of Nine West Australia, and there is a serious question to be tried. The Court accepts the undertakings and makes consent orders allowing Sutton Developments Pty Ltd to proceed in the name and on behalf of Nine West Australia Pty Limited.

Court Disposition

leave granted by consent subject to undertakings; respondent's stay motion dismissed; no order as to costs; liberty to apply reserved

Orders

  • ['Sutton has leave pursuant to s 237(2) of the Corporations Act 2001 (Cth) to proceed with proceedings in the name of and on behalf of Nine West Australia Pty Limited.' 'Sutton may not take any step in the proceedings until the security referred to in the deed poll has been provided and the Trustee has agreed to...