In the matter of Wollongong Coal Limited

Wollongong Coal Limited sought a declaration that it could purchase shares in itself, without shareholder approval, to implement a settlement of other proceedings. The application was brought under section 259A of the Corporations Act 2001, which provides that a company may apply to the court for an order allowing it to acquire its own shares if the court is satisfied that the order is not contrary to the interests of shareholders or creditors generally. The company sought an order that it could purchase a substantial block of shares from a single shareholder, without the need for shareholder approval, to implement a settlement of other proceedings. The shareholder opposed the application.

The court considered whether section 259A(c) conferred a power on the Court to make such an order. The court also considered whether such an order ought to be made. The court found that section 259A(c) did confer a power on the Court to make such an order. The court found that the order ought to be made, as the application met the criteria set out in the statute and the order would not be contrary to the interests of shareholders or creditors generally.

The court made the order that Wollongong Coal Limited could purchase the shares in itself, without shareholder approval, to implement the settlement of other proceedings. The court found that the order would not be contrary to the interests of shareholders or creditors generally and that the application met the criteria set out in the statute. The court also found that the order was in the best interests of the company and its shareholders.