Neville Leonard Blunden v Blunden and Bell Pty Ltd

[2012] NSWSC 173

Supreme Court

New South Wales

Medium Neutral Citation:	Neville Leonard Blunden -v- Blunden & Bell Pty Ltd [2012] NSWSC 173
Hearing dates:	21 February 2012
Decision date:	21 February 2012
Jurisdiction:	Equity Division - Corporations List
Before:	Hammerschlag J
Decision:	An order for the winding up of the defendant
Catchwords:	CORPORATIONS - winding up - Corporations Act 2001 (Cth) ss 461(1)(e) and (f) - a vehicle established to operate a franchise has ceased to trade and is insolvent - winding up order made - no issue of principle
Legislation Cited:	Corporations Act 2001 (Cth)
Category:	Principal judgment
Parties:	Neville Leonard Blunden - Applicant Blunden & Bell Pty Ltd - Respondent
Representation:	Counsel: R.G. Thomas - Applicant Solicitors: Fitzgerald Naylor Lawyers - Applicant
File Number(s):	2011/277624

EX TEMPORE Judgment

1. HIS HONOUR: The plaintiff moves for an order that the defendant company (the company) be wound up on the grounds that:

(a)   the directors have acted in the affairs of the company in their own interests rather than the interests of the members as a whole or in a manner that appears to be unfair, unjust to the other members (s 461(1)(e) of the Corporations Act 2001 (Cth)); and

(b)   the affairs of the company are being conducted in a manner that is oppressive or unfairly prejudicial to or unfairly discriminatory against a member or members or in a manner that is contrary to the interests of the members as a whole (s 461(1)(f).

1. The factual background appears from the plaintiff's affidavit, sworn 26 August 2011, and two affidavits of his solicitor Matthew Phillip Fitzgerald sworn 6 October 2011 and 16 February 2012.

1. The company, is a vehicle through which the plaintiff and his co-shareholder, Wayne Bell, purchased and operated a Michel's Patisserie franchise at Jerrabomberra, New South Wales. Since 3 February 2010 Wayne Bell has been the sole director of the company.

1. During Mr Bell's stewardship of the company, and on or about 16 January 2012, the franchisor terminated the franchise for breach by the company in failing or refusing to open for trade or otherwise operate in accordance with the franchise arrangements. The business is no longer operating under the Michel's Patisserie name or at all. The company has current debts of $45,617.77 and insufficient funds to meet them. The company's solicitors have withdrawn.

1. The company was called out of Court but did not appear.

1. I am satisfied that the affairs of the company are being conducted in a manner contrary to the interests of the members as a whole. Moreover, it is insolvent. It should accordingly be wound up. A consent by Mr Henry Kazar, liquidator, has been filed.

1. I make the following orders.

1. Pursuant to s 233(1) of the Corporations Act 2001 (Cth) I order that Blunden & Bell Pty Ltd ACN 36 099 604 029 be placed under winding up and that Henry Kazar of Kazar Slaven, Level 3, Engineering House, 11 National Circuit Barton, Australian Capital Territory, be appointed as liquidator. These orders are to be entered forthwith.

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Decision last updated: 05 March 2012