In the matter of Bakers Extra Pty Ltd [2017] NSWSC 1257

In the matter of Bakers Extra Pty Ltd [2017] NSWSC 1257

All criteria under Corporations Act 2001 s 237 for leave to bring derivative proceedings are satisfied: there is a serious question to be tried, good faith established, best interests of company served by prosecuting a valuable cause of action with plaintiff's undertaking to indemnify company; search order should not be set aside as no material nondisclosure and prima facie case established against third and fourth defendants.

Jurisdiction
Australia
Judgment Date
04 October 2017
Procedural Posture
Corporations – Practice and Procedure / Interlocutory Applications for Leave to Bring Proceedings and to Set Aside a Search Order
Outcome
Leave granted to plaintiff to bring proceedings; application to set aside search order dismissed with costs.
Legal Topics
['derivative Action' 'fiduciary Duties' 'corporate Opportunity' 'search Order' 'good Faith' 'best Interests of the Company']
['corporations Law' 'equity'] ['derivative Action' 'fiduciary Duties' 'corporate Opportunity' 'search Order' 'good Faith' 'best Interests of the Company']

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Procedural Posture

Corporations – Practice and Procedure / Interlocutory Applications for Leave to Bring Proceedings and to Set Aside a Search Order

Legal Issues

  1. 1 ['Whether plaintiff should be granted leave under Corporations Act s 237 to bring proceedings on behalf of Bakers Extra Pty Ltd' 'Whether the proceedings are in the best interests of the company' 'Whether the plaintiff is acting in good faith' 'Whether the search order should be set aside']

Ratio Decidendi

All criteria under Corporations Act 2001 s 237 for leave to bring derivative proceedings are satisfied: there is a serious question to be tried, good faith established, best interests of company served by prosecuting a valuable cause of action with plaintiff's undertaking to indemnify company; search order should not be set aside as no material nondisclosure and prima facie case established against third and fourth defendants.

Court Disposition

Leave granted to plaintiff to bring proceedings; application to set aside search order dismissed with costs.

Orders

  • ['Plaintiff Van Hung Le granted leave under Corporations Act s 237 to bring proceedings on behalf of and in the name of Bakers Extra Pty Ltd under s 236.' "Third and fourth defendants' interlocutory process to set aside search order dismissed with costs." "First and second defendants to pay plaintiff's costs of...