Corporations Law Case Study

Running head: CORPORATIONS LAW
CORPORATIONS LAW
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CORPORATIONS LAW1
Case study
The present case involves the whether the company is to be wound up on grounds of
equity and justice as given under section 461(1)(k) of the Corporations Act1 by considering the
application seeking an order for purchasing shares by member belonging to the company as per
section 233(1)(d)2 of the Act.
The company had a business of selling natural health products and supplements to the
tourists of Korea on their visit to Australia. These Korean tourists were brought to the company’s
stores by their tour agents. The plaintiff in the case was Ms Chae, who was a defendant
company’s shareholder. She is also child of Mr Han Young Chae and Ms Kim who was also a
director. Ms Moon, another director of the company was the second defendant. Mr Moon’s
daughter was Ms Hong who is the third defend in the case besides being the shareholder of the
company.
But there happened a bittering of the relation among the parties. The only directors of the
company were Ms Moon and Ms Chae and there was no provision regarding resolving the
deadlock between the directors present in the constitution of the company or in the agreement in
writing of the shareholders. Thus Ms Chae made an application seeking an order under sections
233 (1) (d), 233 (1) (j), 461 (1) (f) and 461 (1) (k) of the Corporations Act3 claiming that Ms
Hong either transfer her share to Ms Chae for consideration decided by the Court or the winding
up of the company on the basis of grounds of equity and justice. Both Ms Moon and Ms Hong
did not agree to the winding up of the company instead they sought interlocutory orders under
1 Corporations Act 2001(Cth), s 461(1)(k).
2 Corporations Act 2001(Cth), s 233(1)(d).
3 Corporations Act 2001(Cth), ss 233(1)(d), 233(1)(j), 461(1)(f), 461(1)(k).