Recent case: the statutory derivative action & leave under Corporations Act 2001 (Cth) s 237

A grant of leave to pursue a statutory derivative action on behalf of an unwilling corporation is a relatively infrequent exercise of judicial discretion. 

Recently, Justice Ashley Black of the Supreme Court of New South Wales' Corporations List made orders pursuant to s 237 of the Corporations Act 2001 (Cth)  granting leave to the trustee of a family trust to proceed on behalf of a corporate trustee, which operates a window and door manufacturing and installation business.

A copy of his Honour's ex tempore reasons is now available: Australian Mortgage & Finance Company Pty Ltd as trustee for the Melnikoff Family Trust & 2 Ors v  Rome Euro Windows Pty Ltd as trustee of the Rome Euro Windows Unit Trust & 6 Ors 2014/28291, unreported, 12 December 2014

Dominique Hogan-Doran appeared for the successful applicants for leave. She also appeared in an earlier application in the same proceedings, in which her clients successfully opposed an application by the defendants for leave pursuant to s 237 to pursue claims  against them and a related third party developer:  [2014] NSWSC 996 and [2014] NSWSC1173 (form of orders & costs).