Educational Resources Pty Ltd v Hennessy

Educational Resources Pty Ltd, a company in liquidation, sued its directors, James Nicholas Poteri and Nicki Poteri, for misappropriating trust funds. The directors were responsible for managing fees received from overseas students who intended to study English in Australia but were denied visas. The court had to determine whether the directors breached their fiduciary duties and whether they misused company funds. The plaintiffs argued that the directors applied trust funds for personal use, while the defendants claimed the money was used for legitimate business purposes. The court found that the directors misappropriated funds intended for the students, breached their fiduciary duties, and misused company funds. The judgment ordered the defendants to repay the misappropriated funds plus interest, and to cover the plaintiffs' legal costs.