Injunction Restraining Sale of Property Due to Share Ownership Dispute
📚 Full judgment
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⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- There is a serious question to be tried regarding the beneficial ownership of the shares.
- The balance of convenience favors restraining the defendants from dealing with the proceeds of sale.
- The property may incur further mortgage outgoings if not sold, affecting its value negatively.
- An undertaking not to sell for less than $670,000 reduces the risk of an undervalued sale.
- The sale is likely to proceed regardless due to a s 57(2)(b) notice and outstanding levies.
❌ Tends to be rejected
- The potential for the property to appreciate in the future is speculative and does not significantly favor granting an injunction.
- The risk of the sale being at an undervalue is mitigated by the minimum sale price undertaking.
- The prejudice to the plaintiff from losing the opportunity to retain the property is considered speculative.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What was the dispute about?
The dispute was about who had the beneficial ownership of shares in a company.
Which laws or rules were applied?
The Corporations Act 2001, s 128 and the Real Property Act 1900, s 57(2)(b) were applied.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation may be able to obtain an injunction if there is a serious question to be tried regarding the beneficial ownership of shares and the balance of convenience favours the plaintiff.
What evidence or documents mattered?
The evidence and documents related to the beneficial ownership of shares and the corporate governance procedures were important.