The App Shop Pty Ltd v Jalal Brothers Pty Ltd [2019] NSWSC 490

All requirements under s 237(2) Corporations Act 2001 (Cth) are satisfied: Pixl would not bring the proceedings; ASPL is acting in good faith; the action is in Pixl's best interests, the indemnity and deposited funds sufficiently protect Pixl from costs exposure; there is a serious question to be tried. Leave is...

Source-derived case information.

Jurisdiction: Australia
Judgment Date: 01 May 2019
Procedural Posture: Statutory Derivative Action Application / Application for Leave to Bring Proceedings Under S 237 Corporations Act
Outcome: Leave granted to The App Shop Pty Ltd to bring proceedings on behalf of Pixl Pty Ltd under s 237 Corporations Act 2001 (Cth)
Legal Topics: ['statutory Derivative Actions' 'applications for Leave to Sue on Behalf of Company' 'company Best Interests' 'security for Costs' 'good Faith Requirement']

['corporations Law' 'equity'] ['statutory Derivative Actions' 'applications for Leave to Sue on Behalf of Company' 'company Best Interests' 'security for Costs' 'good Faith Requirement']

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Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1

Procedural Posture

Statutory Derivative Action Application / Application for Leave to Bring Proceedings Under S 237 Corporations Act

Legal Issues

1 ['Whether leave should be granted to The App Shop Pty Ltd to bring proceedings on behalf of Pixl Pty Ltd under s 237 of the Corporations Act 2001 (Cth)' "Whether the proceedings are in Pixl's best interests" 'Whether The App Shop Pty Ltd is acting in good faith' 'Whether there is a serious question to be tried']

Ratio Decidendi

Court Disposition

Leave granted to The App Shop Pty Ltd to bring proceedings on behalf of Pixl Pty Ltd under s 237 Corporations Act 2001 (Cth)

Orders

['Upon the undertakings set out in the reasons, leave is granted to The App Shop Pty Ltd to bring proceedings on behalf of Pixl Pty Ltd in the form of the proposed Statement of Claim annexed to the affidavit of Mr Touma dated 5 April 2019.']

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