Notice of meeting cloud over VAs’ validity

Sunset at the sea. It's raining
DV Recovery Management’s Daniel O’Brien.

A shareholder dispute has spilled into the NSW Supreme Court with one of the warring factions seeking to oust voluntary administrators (VAs) of their company on the basis that a supposedly suspect Notice of Meeting meant the resolution passed to appoint VAs was invalid.

In the court on Monday counsel for estate agent and creditor William Tianguang Bai of Bai Family Management Pty Ltd pressed an application for a declaration that a meeting of the members of Space Entertainment Pty Ltd held on October 31, 2023 was invalidly convened.

Through his counsel Bai, who is also a director of Space Entertainment, told the court he also wants incumbent administrators Danny Vrkic and Daniel O’Brien removed and O’Brien Palmer principal Chris Palmer appointed.

Lawyers for the incumbents meanwhile told the court they intended to apply for declarations affirming their appointments as valid and, because it’s also worth having a bob in each way, orders approving their remuneration and expenses.

Vrkic and O’Brien, cushioned by a $58,000 indemnity from Space Entertainment director Sho Kamamiya, have already beaten off one replacement attempt at the first meeting of creditors.

At the meeting on November 11 creditors declined to vote in Greengage Advisory’s Patrick Loi and John Chand, the then preferred nominees of creditor Wide Source Realty Pty Ltd, the sole director of which is Bai.

For reasons unknown to this masthead Bai ditched Loi and Chand and is now proposing Palmer as replacement administrator.

The question of whether Vrkic and O’Brien should be removed is expected to be heard later this week.

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