DC Rd DC Pty Ltd v Zhang (No 3)

The applicants in DC Rd DC Pty Ltd v Zhang (No 3) sought a contempt of court charge against Belrose COB and Mr Zhang, alleging that they breached a freezing order by using funds from the sale of a property to purchase another property. The Federal Court was required to decide whether the transaction was in the ordinary and proper course of business and whether Mr Zhang, as a director of Belrose COB, was bound by the freezing order. The court also had to consider whether Mr Zhang could be held liable for contempt if he did not have actual knowledge of the breach. The court found that the transaction was in the ordinary course of business and that the principle concerning contempt by third parties applied to those not bound by the order, rather than only those not parties to the proceedings. The court followed the High Court's obiter dicta and dismissed the charge. The interlocutory application was dismissed, and the applicants were ordered to pay the costs of Belrose COB and Mr Zhang.