Kijurina (as liquidator of ET Family Pty Limited) v Taouk

Kijurina, as liquidator of ET Family Pty Limited, brought proceedings against Taouk to recover statutory and/or equitable compensation from him for his use of company assets for personal financial benefit. Taouk, the sole director of the company, had transferred the assets to his wife pursuant to a Binding Financial Agreement under the Family Law Act 1975 (Cth). The court was required to determine whether these transactions were insolvent, uncommercial, voidable, or unreasonable director-related transactions, and whether they breached statutory and fiduciary director’s duties.

The court considered whether a reasonable person in Taouk's position would have entered into the transactions. The transactions were deemed to have been made for Taouk's personal benefit rather than for a proper purpose and in the best interests of the company. The court held that Taouk had breached his statutory and fiduciary director’s duties, and that the transactions were voidable. The court found that the transactions were uncommercial and unreasonable, and that Taouk had not acted with the requisite degree of care and diligence as required by the Corporations Act 2001 (Cth).

The court ordered Taouk to pay the plaintiffs statutory and equitable compensation, interest, and costs. The orders specified the amounts to be paid to each plaintiff, along with the rates and dates for interest. The court also ordered Taouk to pay interest on the sums recovered from him under certain orders. The plaintiffs were granted costs as agreed or taxed.