McGEACHIE v Clark

The plaintiffs, who are members of a strata company, sought an urgent ex parte interlocutory injunction to prevent the passage of certain motions at the annual general meeting. The primary concern of the plaintiffs was to avoid any alteration or termination of the Strata Plan, which consisted of 118 hectares of common property. The legal issues involved the general reluctance of courts to intervene in meetings of corporations or strata companies and the exceptional circumstances under which such intervention might be justified. The court considered the precedents set in cases such as Uniting Church of Australia Property Trust (NSW) v Macquarie Radio Network Pty Ltd, Hopkins Professional Services Pty Ltd v Foyster Holdings Pty Ltd, Paringa Mining & Exploration Co plc v North Flinders Mines Limited, and Carr Boyd Minerals Limited v Ashton Mining Limited and Ors. These cases emphasised the fundamental right of members to convene meetings and move resolutions, and the courts' reluctance to interfere unless there was clear evidence of serious misconduct or irreparable harm. In this case, the proposed resolutions at the annual general meeting did not relate to the alteration of the Strata Plan or the re-subdivision of lots, and therefore did not fall within the exceptional circumstances for court intervention. The court concluded that the plaintiffs had not established a serious question to be tried and that the balance of convenience did not favour disturbing the status quo. Consequently, the application for the interlocutory injunction was dismissed, and the plaintiffs were ordered to pay the costs of the application.