Matthew Doyle represented the Plaintiff, Joanna Heath Scott, instructed by Russels.
The Plaintiff sought orders against two of the directors of each of the corporate defendants, Aulich Civil Law Pty Ltd, and Aulich Property Trading Pty Ltd for shareholder oppression under ss 232 and 233 of the Corporations Act 2001 (Cth). It was alleged that the Plaintiff’s shareholding, and its value, were dramatically diluted as a result of the directors’ decision to issue shares in the companies to the other existing shareholders at par value, very considerably below their true value. Justice Stewart granted the Plaintiff’s requested relief of monetary compensation to reflect the loss of the value of her interest in the companies as a result of the dilutionary share issues. The novelty of such remedy, ordering the directors to directly compensate a shareholder under s 233 of the Corporations Act, was acknowledged, but was nonetheless considered the most appropriate remedial means giving the defendants’ imminent liquidation. Costs were further awarded to the Plaintiff.
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