El Bayeh v Bayeh [2011] NSWSC 101

A company was set up with three shareholders in equal shares to develop a property. One of the shareholders contributed the majority of the money required to purchase the property. The property was developed and the proceeds of sale were held by in a solicitors trust account. The shareholder who fronted the majority of the money sought urgent orders to ensure the funds in the trust account were not distributed to the company until the Court had determined his claim. Although Justice Einstein found there was an arguable case he refused relief on the “balance of convenience” noting:

The amount owing to Yousseff El Bayeh’s debt has been estimated at $1.3 million. If he receives his disbursement of $551k according to the resolution dated 1 March 2011, this would reduce the money owed to him to $748k. Considering the company’s other assets total approximately  $716k this is sufficient to cover most of the money owed to him.

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