GMW Group Pty Ltd (Receivers and Managers Appointed) (in liquidation) v Michael Saadie in his own right and trading as GMW1 [No 2]

The case involved GMW Group Pty Ltd (Receivers and Managers Appointed) (in liquidation), represented by its liquidators, as the plaintiffs, against Michael Saadie and others, who were directors of the company and the defendants. The dispute arose from claims of breaches of director duties under the Corporations Act 2001 (Cth) and demands for payment under guarantees. The plaintiffs sought summary judgment against the first defendant for failing to pay the amount due under the guarantees. The defendants argued that the loan facility had been extended and that the gaming machine licences were held on trust for the benefit of the first defendant. The matter was heard in the Supreme Court of New South Wales.

The primary legal issue the court had to address was whether there was any evidence to support the defendants' claims regarding the extension of the loan facility and the trust holding of the gaming machine licences. Additionally, the court needed to determine if the defendants had breached their duties as directors by causing the company's property to be lost and appropriated in their favour. The court also had to consider whether the plaintiffs were entitled to summary judgment under rule 292 of the Uniform Civil Procedure Rules 1999 (NSW).

In ruling on the case, the court found that the defendants had breached their duties as directors by causing the company to lose property and appropriate it for their benefit. The court held that there was no evidence to support the defendants' assertions about the extension of the loan facility or the trust holding of the gaming machine licences. Consequently, the plaintiffs were entitled to summary judgment against the first defendant. The court declared that each defendant contravened section 180 of the Corporations Act by causing property of the company to be lost and appropriated in their favour. The court awarded judgments in favour of the plaintiffs against the defendants for the amounts due under the guarantees, including interest.

The final orders of the court included declarations that each defendant contravened section 180 of the Corporations Act, judgments for the plaintiffs against the defendants for the amounts due under the guarantees with interest, and orders for the payment of these amounts. The court ordered that the first defendant pay the first plaintiff $226,730 plus interest, and the third plaintiff to be paid $14,243,018.71 by each defendant.