Challenge Bank Ltd (ACN 009 230 433)

[1995] FCA 1177

CATCHWORDS

CORPORATIONS - compromises and arrangements - particular schemes - application to convene meetings of shareholders and noteholders

Corporations Law, s411(1), (2)

CHALLENGE BANK LTD (ACN 009 230 433)
NO. WAG 3048 OF 1995

JUSTICE R D NICHOLSON
PERTH
13 OCTOBER 1995

IN THE FEDERAL COURT OF AUSTRALIA   )   LIMITED DISTRIBUTION

WESTERN AUSTRALIA DISTRICT REGISTRY )

GENERAL DIVISION                   )   NO. WAG 3048 OF 1995

IN THE MATTER OF:                  CHALLENGE BANK LTD

(ACN 009 230 433)

Applicant

CORAM:JUSTICE R D NICHOLSON

DATE:13 OCTOBER 1995

PLACE:PERTH

REASONS FOR JUDGMENT

This is an application pursuant to s411(1) Corporations Law which seeks the convening of certain meetings for the purpose of having shareholders, convertible note-holders and option‑holders consider and approve various schemes of arrangement.   

I am satisfied on the evidence before me that matters arising under s411(2) of the Corporations Law offer no inhibition to the Court making an order in response to the application.  As the terms of Exhibit 1 make apparent, the Australian Securities Commission ("the Commission") has had reasonable opportunity both to examine and make submissions on the proposed schemes and meetings and, both by implication and by oral submission, it has affirmed that the relevant time limits have been complied with.

I am also satisfied on the evidence to which I have been taken in some detail that it is appropriate that these schemes should go before the various meetings at which it is proposed they will be considered.  It is made clear in the documents supporting the application, as I make clear now, that the Court in making the orders sought is not granting its approval to the scheme.  It is ordering that these schemes are in a form which should go forward to each of the relevant meetings.

3.

The evidence to which my attention has been directed is evidence which is not opposed by the Commission and, in addition, it is apparent from the evidence that the supervision of the Commission has resulted in some amendments to the terms of the proposed schemes which are to be considered by the relevant meetings.

For those reasons I am prepared to make the orders in terms of the minute of the applicant as amended in handwriting in paragraph 4 and paragraph 14 and with the addition of paragraph 15, which minute I have initialled for identification.

I certify that this and the preceding page are a true copy of the Reasons for Judgment of his Honour Justice R D Nicholson.

Associate:

Date:

APPEARANCES

Counsel for the Applicant:         Mr P G Hely QC

and Mr S K Dharmananda

Solicitors for the Applicant:        Corrs Chambers Westgarth

Counsel for

Australian Securities Commission:   Mr A Taylor

Solicitors for

Australian Securities Commission:   Mr A Taylor

Date of Hearing:                   13 October 1995

Date of Judgment:                  13 October 1995