The parties, equal shareholders and directors of two closely-held houseware liquidation companies, experienced a breakdown in their business relationship.
The applicant sought leave to bring derivative actions against the respondent for alleged self-dealing and breach of fiduciary duty, as well as an interlocutory injunction to remove him as a director.
The respondent brought cross-applications to wind up the companies, claiming the parties were deadlocked and had previously agreed to wind up the business.
The court granted leave for the derivative actions, finding a well-founded basis for the claims.
However, the court dismissed the request for an interlocutory injunction, finding no irreparable harm.
The court also declined to order a winding-up at this stage, directing that the cross-applications be tried together with the derivative and oppression actions, as viva voce evidence was required to resolve credibility issues and determine the appropriate remedy.