Consideration of C & C Fisher's allegations of bad faith
46 It is appropriate to begin my consideration of C & C Fisher's allegations of bad faith by noting that Mr Livadaras' role as Chairman of the 12 December meeting relevantly included a requirement for him to hear the contentions of fact going to the questions he had to decide and to decide those issues impartially taking into account those facts and any facts known to him at the time: see McLean Bros & Rigg Ltd v Grice (1906) 4 CLR 835 ("McLean Bros") at 860 per Barton J and Livadaras at [68].
47 The requirement of impartiality obviously dictates an absence of bias or prejudgment. Some of C & C Fisher's allegations against Mr Livadaras are to the effect he was biased, or more specifically, he had prejudged the issues he had to determine at the meeting: see [43.2], [43.3] and [43.5] above. To establish these allegations of bias, or prejudgment, against Mr Livadaras, C & C Fisher will need to show that Mr Livadaras had, and maintained, a closed mind on the question of the validity of the C & C Fisher votes, or that he was unable or unwilling to decide that question impartially: see Sun Zhan Qui v Minister for Immigration and Ethnic Affairs (1997) 151 ALR 505 at 555 per Burchett J and Gamaethige v Minister for Immigration and Multicultural Affairs (2001) 109 FCR 424 ("Gamaethige") at 442 to 443 per Stone J (with whom Hill J agreed).
48 It will not be sufficient for C & C Fisher to show that Mr Livadaras held views about the desirability of removing Australian Olives as the responsible entity for the Scheme: see Vakauta v Kelly (1989) 167 CLR 568 at 576 per Dawson J and Gamaethige at 443 per Stone J. This point is important because, on the evidence before me, I find that Mr Livadaras probably did hold the view that it was in the best interests of the members of the Scheme that Australian Olives be removed as the responsible entity for the Scheme. However, I consider that C & C Fisher must go much further than this and show, for example, that Mr Livadaras was not willing to receive relevant information about the validity of the C & C Fisher votes, or was not willing to listen to arguments on that question, or demonstrated by his conduct that he was not open to be persuaded to a contrary view.
49 Turning then to C & C Fisher's specific allegations of bad faith, I consider there is a short answer to the first allegation (in [43.1] above) that Mr Livadaras failed to disclose the legal advice he received at the 12 December meeting. That is: that there is no evidence that anyone at the 12 December meeting asked Mr Livadaras to disclose that legal advice. Since it was not the sort of information that a chairperson of a meeting would ordinarily volunteer to disclose, I do not consider that Mr Livadaras can be criticised for failing to disclose it, if he was not asked to. It follows that I do not see how its non-disclosure can possibly support a conclusion of bad faith on Mr Livadaras' part.
50 I also do not consider the allegations (in [43.2] above): that Mr Livadaras seemed fixated on the C & C Fisher votes; that he was determined to conclude that they were invalid; and that he kept changing his line of attack, support a conclusion that Mr Livadaras acted in bad faith. As Chairman of the meeting Mr Livadaras had to determine whether or not C & C Fisher was entitled to cast its 70 votes. This was, without doubt, the most controversial issue to be determined at the meeting. It is, therefore, not surprising that Mr Livadaras was focused on, or even fixated by, this issue. Provided that his fixation, or determination, does not support a conclusion he was biased, or had prejudged this issue (as to which see [51] to [55] below), I do not consider these allegations support a conclusion of bad faith on Mr Livadaras' part.
51 As to allegations (in [43.2], [43.3] and [43.5] above) to the effect that Mr Livadaras was biased, or that he prejudged the issues he had to determine at the 12 December meeting, first, it is to be noted that C & C Fisher have not expressly identified what "ulterior motive" Mr Livadaras had in wishing to have Australian Olives removed as the responsible entity for the Scheme. As I have already noted above (see at [44]), C & C Fisher have not alleged that Mr Livadaras was pursuing some direct or indirect financial motive. Further, I do not consider the view he held that it was in the best interests of the members of the Scheme that Australian Olives be removed as the responsible entity for the Scheme constitutes an ulterior motive, in any relevant sense.
52 More importantly, I do not consider that a fair reading of the transcript of the 12 December meeting shows that Mr Livadaras demonstrated bias, or prejudgment, in the discharge of his role as Chairman of that meeting. Among other things, that transcript shows that Mr Livadaras sought further information from Mr Beddoe and Mr Shaw about the payments C & C Fisher made for the 70 groves and what adjustments, if any, had been made between C & C Fisher and Australian Olives for the pre-paid management fees: see above at [31]. It also shows that Mr Livadaras expressed concerns about the vagueness of the information that was provided to him in response and offered an opportunity for it to be clarified: see above at [33] and [35]. Mr Shaw's ultimate response to that opportunity was to claim those concerns were not relevant: see above at [35]. It is also apparent from the transcript that Mr Livadaras stated his tentative views about the nature of the relationship between C & C Fisher and Australian Olives and that he listened to the arguments put by Mr Shaw and others in response before he made his ruling: see above at [34] to [38]. By way of contrast, there is no evidence in the transcript that Mr Livadaras was not willing to receive relevant information about the validity of the C & C Fisher votes, or was not willing to listen to arguments on that question, or was not open to be persuaded to a contrary view. I therefore consider the transcript shows Mr Livadaras diligently and impartially discharged his role as the Chairman of the meeting. It is worth interpolating that in many respects Mr Livadaras was discharging a role that is not too dissimilar to the inquisitorial role of the Refugee Review Tribunal, the diligent discharge of which the High Court has cautioned should not be too readily taken as evidence of apprehended bias: see Re Refugee Review Tribunal; Ex parte H (2001) 179 ALR 425 at [30].
53 As to the specific allegation (in [43.7] above) that Mr Livadaras would not accept the statements made to him by Mr Beddoe and Mr Shaw about the payment of the management fees, I do not consider Mr Livadaras was under any obligation to accept those statements at face value. Mr Livadaras made it quite clear at the meeting that he was particularly interested in the precise nature of the arrangements made between Australian Olives and C & C Fisher about the payment of, or adjustment for, the management fees for the 70 groves purchased by C & C Fisher: see above at [31], [33] and [35]. It is quite understandable that he was interested in those matters because the evidence before me (matters which must have been well known to all those at the meeting) shows that the annual management fee payable for a grove was between $1,800 and $2,000. This means that the total annual management fees that were paid or payable for the 70 C & C Fisher groves, were between $126,000 and $140,000. Given that C & C Fisher purchased the 70 groves in August 2008 for $1,400 (mistakenly reduced to $140) and the management fees were paid by Australian Olives in the previous March and May, commercial reality would suggest an adjustment of at least $70,000, and as much as $100,000 (depending on whether it is calculated from March or May and at the lower or higher rate) may have been in order.
54 Mr Shaw told Mr Livadaras that no deal had been done about the management fees and that no payment had been made by way of adjustment for those fees: see above at [32] to [35]. When clarification was sought on these issues, Mr Shaw ultimately chose to question the relevance of Mr Livadaras' concerns, rather than attempt to provide clarification: see above at [35]. Faced with the contradiction in, and vagueness of, these statements and the reluctance to provide the clarification sought, I consider Mr Livadaras was quite entitled not to accept what the Australian Olives representatives told him at the 12 December meeting and instead to conclude that he was not satisfied that C & C Fisher had paid the management fees in question, whether directly, or by way of adjustment (see at [38] above). Moreover, while he clearly came to a different conclusion about this issue to that urged upon him by the Australian Olives' representatives, provided that conclusion was open to him on the facts known to him, as I consider it was, his reaching that conclusion in those circumstances could not be said to demonstrate bias or prejudgment.
55 For these reasons, I do not consider that C & C Fisher have made out the allegations that Mr Livadaras was biased, or demonstrated any prejudgment, of the issues he had to determine at the 12 December meeting.
56 As to the allegation (at [43.4] above) that Mr Livadaras misled the meeting when he said he had a discussion with a concerned investor "just prior to the meeting", I fail to see how this has any bearing on the question whether he discharged his role as the Chairman of the meeting in bad faith, viz, dishonestly, or knowingly for an improper purpose. I should add that Mr Livadaras denied this allegation on oath in his evidence before me. I would put in the same category C & C Fisher's allegations (although not specifically set out in [43] above) that Mr Livadaras believed that the C & C Fisher votes would be cast against the extraordinary resolutions, that Mr Livadaras was concerned to know whether the deed of assignment had been stamped, and that Mr Livadaras said in evidence that he wanted documentary proof that C & C Fisher had paid for its 70 groves, yet he did not ask for that kind of proof at the 12 December meeting.
57 C & C Fisher also allege (at [43.6] above) that bad faith can be inferred from the fact that Mr Livadaras did not contact Mr Fisher and ask him about the issues of concern to him, even though it was suggested at the meeting that he should do so. The first thing to be said about this allegation is that there is no evidence that Mr Fisher was readily contactable on the day of the meeting. Nor is there any evidence that Mr Livadaras, or anyone else, knew how or where to contact him. Apparently Mr Shaw, who made the suggestion, did not know where, or how, he might be contacted because the transcript records him saying at the meeting, immediately after he made the suggestion: "His details in terms of address are on the register of members, aren't they?": see above at [37]. In any event, there is no evidence before me to suggest that, even if he had been contacted, Mr Fisher would have been able, or willing, to shed any more light on the issues of concern to Mr Livadaras than the two representatives of Australian Olives who were present at the meeting.
58 Finally, there is a number of responses to the allegation (at 43.8 above) that Mr Livadaras took no steps to put Australian Olives, or C & C Fisher, on notice as to the issues he intended to raise at the 12 December meeting. First, there is the obvious response that Mr Livadaras was not to know, until he attended the meeting, that he would be elected as its Chairman. Secondly, and more importantly, all of the members of the Scheme, including Australian Olives and C & C Fisher, had received the notice of the meeting, which set out the extraordinary resolutions to be considered at the meeting. Moreover, this was the third adjourned meeting held to consider those resolutions and it is apparent from the transcript of the 12 December meeting that those who attended were well aware that the entitlement of C & C Fisher to cast its 70 votes was to be the central issue at the meeting. This is borne out by the fact that Mr Shaw, Australian Olives' solicitor, was sufficiently prepared that he was able to address the meeting at length about the legal issues involved with the C & C Fisher votes, including matters such as what the terms "associates" and "acting in concert" meant in the construction of s 253E of the Act. Further, there was quite a deal of discussion by Mr Shaw and others at the meeting about the reasons of Greenwood J on the similar issues in Livadaras.