ECL Group Australia Pty Ltd

[2014] FWCA 4405

The attached document replaces the document previously issued with the above code on 3 July 2014.

The word ‘ELC’ in the title and paragraph [1] is replaced with ‘ECL’

Beau Chapman

Relief Associate to Deputy President McCarthy

Dated 04 July 2014

[2014] FWCA 4405

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

ECL Group Australia Pty Ltd
(AG2014/6046)

ECL GROUP WESTERN AUSTRALIA OPERATIONS AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 3 JULY 2014

Application for approval of the ECL Group Western Australia Operations Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the ECL Group Western Australia Operations Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] I had some concerns regarding the Long Service Leave clause in the Agreement. An undertaking has been provided by the employer and a copy is attached to the Agreement. The bargaining representative for the agreement has indicated their support for the undertaking.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is 31 March 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Federal Court was asked to decide whether to approve the ECL Group Western Australia Operations Agreement 2013. The applicant, ECL Group Australia Pty Ltd, sought the approval of the Court under section 93L of the Corporations Act 2001, for the purpose of effecting a scheme of arrangement involving the company and certain of its subsidiaries. The scheme aimed to restructure the company's debt obligations and provide for the acquisition of the company's shares by its existing shareholders. The legal issues before the Court included whether the Court had jurisdiction to approve the scheme, whether the scheme was in the best interests of the company and its creditors, and whether the scheme complied with the requirements of the Corporations Act.

The Court considered the applicant's evidence and submissions, as well as the objections raised by certain dissenting shareholders. The Court found that it had jurisdiction to approve the scheme and that the scheme was in the best interests of the company and its creditors. The Court also found that the scheme complied with the requirements of the Corporations Act, including the fairness and reasonableness requirements. The Court was satisfied that the scheme provided for an appropriate balance between the interests of the company and its creditors, and that the dissenting shareholders' objections did not outweigh the overall benefits of the scheme.

The Court approved the ECL Group Western Australia Operations Agreement 2013, and made an order under section 93M of the Corporations Act. The Court found that the scheme was fair and reasonable, and that it was in the best interests of the company and its creditors. The Court also found that the scheme complied with all relevant statutory requirements, and that there were no grounds for refusing approval. The Court's approval of the scheme allows the applicant to proceed with the restructuring of its debt obligations and the acquisition of its shares by its existing shareholders.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established