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Australia Leading Case liquidation voluntary and compulsoryminority protectionpure economic loss

Sons of Gwalia Ltd v Margaretic

(2007) 231 CLR 160
JurisdictionAustralia
CourtHigh Court of Australia
Year2007
StatusBinding authority

Summary

Shareholders with misleading-conduct claims against an insolvent company are not subordinated to ordinary creditors and rank equally with them in the winding-up.

Key Principle

shareholder claims in insolvency; ranking of misleading-conduct claimants

Area of Law

Commercial and Corporations Law

Related Cases

ASIC v Hellicar (2012) 247 CLR 345

Directors of James Hardie's special purpose committee breached their duty of care by approving a misleading ASX announcement about asbestos compensation funding.

ASIC v Healey (2011) 196 FCR 291

Directors have a non-delegable duty under s.180 Corporations Act to read, understand and apply their minds to the company's financial statements before signing them.

Garcia v National Australia Bank Ltd (1998) 194 CLR 395

A bank taking a guarantee from a spouse surety is fixed with constructive notice of undue influence where it fails to ensure the surety received independent advice.

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