A Reconsideration of S 1324(10) of the Corporations Act 2001 (Cth): Damages in Lieu of an Injunction
36(4) Company and Securities Law Journal, Forthcoming
9 Pages Posted: 20 Jun 2018
Date Written: June 5, 2018
This paper considers the operation of s 1324(10) of the Corporations Act (Cth), a section which closely resembles the more general Lord Cairns' Act provisions, and provides for damages in lieu of an injunction. It charts how s 1324(10) has developed very differently from the general Lord Cairns' Act sections which inspired it. It is suggested that courts should take account of the peculiarities of remedies in lieu where companies are involved (including that the company may be the proper plaintiff where a breach of directors' duties is concerned). However, the section should not be interpreted as restrictively has it has been in cases such as McCracken v Phoenix Constructions (Qld) Pty Ltd, and can be used to deal with directors who transfer property away from their companies to evade creditors.
Keywords: Corporations Law, Lord Cairns' Act, Directors' Duties, Injunctions, Creditors, Insolvency, Equity
JEL Classification: K22, K41
Suggested Citation: Suggested Citation