Konekt Limited, in the matter of Konekt Limited

Konekt Limited sought orders to convene a meeting of its members to consider and vote on a proposed scheme of arrangement involving the company and APM. The application was brought under sections 411 and 1319 of the Corporations Act 2001 (Cth). The primary legal issues were whether the court should approve the despatch of the scheme booklet to members and whether the scheme was fair and reasonable. The court was also required to consider whether the proposed special dividend to be paid by Konekt could be considered financial assistance under section 260A of the Corporations Act.

The court considered the evidence and submissions presented, including the scheme booklet, affidavits from directors and officers, and communications with ASIC. The court found that the scheme was fair and reasonable and that the despatch of the scheme booklet should be approved. The court accepted that any issues regarding potential financial assistance would be considered at a later hearing. The court granted the application and ordered the convening of a meeting of members to consider the scheme, the despatch of the scheme booklet, and other procedural matters. The meeting was set for 3 December 2019, and the hearing for approval of the scheme was set for 9 December 2019.

The orders included convening the scheme meeting, despatch of the scheme booklet to members, and other procedural matters such as determining the register of members for the meeting and validating proxy forms. The court also granted relief from certain procedural rules and stood over the proceedings to allow for the scheme meeting and subsequent approval hearing. The orders were to be entered forthwith.