Corporate Law

Ding v Sylvania Waterways Ltd (1999) 46 NSWLT 424

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Facts

  • Sylvania Waterways Ltd (“SW“) owned submerged land in an adjoining residential development.
  • The shareholders of SW consisted of owners of blocks of land adjoining the waterway.
  • SW’s constitution was amended in 1995 to provide that SW could charge the membership fee as an annual levy to pay for the maintenance of the waterway.
  • Ding had been a member prior to 1995 and objected to paying the new annual levy.

Issues

  • Was Ding required to pay more money than the initial price of his membership?

Held

  • The Court found that the effect of s140(2) was to overturn any special contract with regards to increased liabilities through a constitutional amendment without written consent.
  • A shareholder is not bound to contribute more money than the initial price of their membership (for example, share prices or membership fee).

Full Text

The full text is available here: https://iknow.cch.com.au/document/atagUio379852sl10462079/ding-v-sylvania-waterways-ltd


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