Event and Time
Event Description
In July 2014, Ms. Dar initiated proceedings under section 237 of the Corporations Act 2001 (Cth) to seek leave to bring claims against Mr. Akerman, alleging breaches of statutory and fiduciary duties. The claims involved the recovery of the Company’s investments in real estate and payments made for unauthorized director’s fees and legal fees by Mr. Akerman.
Application and Claims
Ms. Dar’s applications included requests for: 1. Recovery of the Company’s quarter share of 9 Miller Street, Bondi, including associated income. 2. Recovery of the Company’s quarter share of property at 5 and 7 Miller Street, Bondi, including associated income. 3. Return of $180,000 paid as director's fees and $16,200 in superannuation. 4. Return of $85,000 paid for legal fees associated with purported services for the Company.
Judicial Decisions
- Black J granted Ms. Dar leave to proceed with the claims but imposed costs indemnity against the Company.
- After thorough examination, the court held that Mr. Akerman lacked authority regarding the transactions, leading to the ruling of unauthorized transactions for some claims, while others failed due to a binding agreement signed by Ms. Dar.
Dispute Points and Legal Basis
Dispute Points
Ms. Dar (Plaintiff)
- Allegations against Mr. Akerman for breaching fiduciary duties by misappropriating Company assets.
- Claims that Mr. Akerman lacked authority to perform the transactions in question, thus rendering them invalid.
- Provided affidavits detailing the factual basis for claims and sought equitable relief.
Mr. Akerman (Defendant)
- Denied allegations, asserting that the transactions were approved by Ms. Dar.
- Defended on the basis of unanimous shareholder consent and limitation periods.
- Filed a cross-claim for:
- Relief from liabilities under the Act. - Rectification of the share register to reflect beneficial ownership.