Re Aston Resources Ltd

Case [2012] FCA 229


FEDERAL COURT OF AUSTRALIA

Aston Resources Limited, in the matter of Aston Resources Limited [2012] FCA 229

Citation: Aston Resources Limited, in the matter of Aston Resources Limited [2012] FCA 229
Parties: ASTON RESOURCES LIMITED ABN 91 129 361 208
File number: NSD 255 of 2012
Judge: JACOBSON J
Date of judgment: 9 March 2012
Catchwords: CORPORATIONS – scheme of arrangement – members scheme – collateral benefit – whether there is a separate class of shareholders
Legislation: Corporations Act 2001 (Cth), s 411
Cases cited: Re APN News & Media Limited (2007) 62 ACSR 400
Australian Education Union v Department of Education and Children’s Services [2012] HCA 3
Re Cashcard Australia Limited (2004) 48 ACSR 738
Re Fosters Group Limited (No.2) (2011) VSC 547
Re Hostworks Group Limited (2008) 26 ACLC 137
Re iSOFT Group Limited [2011] FCA 680
Re NRMA Insurance Limited (No 1) (2000) 33 ACSR 595
Opes Prime Stockbroking Limited (No. 2) (2009) 179 FCR 20
Date of hearing: 9 March 2012
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 50
Counsel for the Plaintiff: Mr P Wood and Mr J Williams
Solicitor for the Plaintiff: Freehills
Counsel for Whitehaven: Mr F Gleeson SC
Solicitor for Whitehaven: Corrs Chambers Westgarth

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 255 of 2012

BETWEEN:

ASTON RESOURCES LIMITED ABN 91 129 361 208
Plaintiff

JUDGE:

JACOBSON J

DATE OF ORDER:

9 MARCH 2012

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Pursuant to subsection 411(1) of the Corporations Act 2001 (Cth) (Corporations Act):

(a)the Plaintiff, Aston Resources Limited ABN 91 129 361 208 (Aston) convene a meeting (Scheme Meeting) of the ordinary shareholders in Aston (other than Whitehaven Coal Limited (Whitehaven) or any of its associates or any person who holds shares in the Plaintiff on behalf of, or for the benefit of, Whitehaven or any of its associates) (Scheme Shareholders), for the purpose of considering and, if thought fit, approving (with or without modification) a scheme of arrangement (Scheme) proposed to be made between Aston and the Scheme Shareholders, the terms of which are contained in the Explanatory Statement, a copy of which is at Tab 3 of Exhibit MES2 (the Scheme Booklet);

(b)the Scheme Meeting be held at 10:00am (Brisbane Time) on 16 April 2012, at the Hilton, Level 8, 190 Elizabeth Street, Brisbane QLD;

(c)Mark Anthony James Vaile, or failing him, David John Ryan, be Chairperson of the Scheme Meeting;

(d)the Chairperson of the Scheme Meeting have the power to adjourn the Scheme Meeting in his absolute discretion;

(e)at the Scheme Meeting, a Scheme Shareholder will be entitled to one vote for each fully paid ordinary share in the capital of the Plaintiff that the person is registered as holding at 10.00am (Brisbane time) on 14 April 2012;

(f)the Scheme Booklet be approved for distribution to the Scheme Shareholders;

(g)on or before 15 March 2012 there…

Continue reading Re Aston Resources Ltd

Sign in free to access the full text

Details
AGLC
Re Aston Resources Ltd [2012] FCA 229
Case
[2012] FCA 229
Decision Date

CaseChat Overview and Summary

In the case of Re Aston Resources Ltd, the central dispute involved the convening of a scheme meeting for the purpose of approving a proposed scheme of arrangement. The matter was heard in the Federal Court of Australia, where Justice Gilmour was tasked with deciding several legal issues regarding the scheme's validity and the appropriate procedures for its approval. The key legal issues addressed by the court included whether there was a separate class of shareholders who received a collateral benefit, and whether the scheme meeting should proceed as planned.

The court considered the arguments presented by the parties and reviewed the reasoning in previous cases such as Re Hostworks Group. Despite the fact that the exercise price in this case exceeded the scheme consideration, the court found no significant distinction in the reasoning applied in earlier cases. The court was satisfied with the submissions made by counsel and concluded that the scheme meeting should proceed as per the draft short minutes of order provided. The court's decision was based on the premise that the scheme was fair and equitable, and that convening the scheme meeting was in the best interest of the company and its shareholders.

In light of the court's decision, specific orders were made to facilitate the scheme meeting and its approval process. These included convening the meeting, setting the meeting date and location, appointing a chairperson, and outlining the voting process and distribution of necessary documents. Additionally, certain regulations were exempted from applying to the scheme meeting, and a notice of hearing was mandated to be published in The Australian newspaper. The proceedings were stood over for a later date to hear any applications to approve the scheme, with liberty granted for one-day notice applications.

The final orders of the court included convening the scheme meeting, exempting certain regulations, publishing a notice of hearing, standing over the proceedings, and providing liberty to apply. These orders were to be entered forthwith, ensuring that the scheme could progress as intended.

Orders

Orders of the court

1. Pursuant to subsection 411(1) of the Corporations Act 2001 (Cth) (Corporations Act):

(a) the Plaintiff, Aston Resources Limited ABN 91 129 361 208 (Aston) convene a meeting (Scheme Meeting) of the ordinary shareholders in Aston (other than Whitehaven Coal Limited (Whitehaven) or any of its associates or any person who holds shares in the Plaintiff on behalf of, or for the benefit of, Whitehaven or any of its associates) (Scheme Shareholders), for the purpose of considering and, if thought fit, approving (with or without modification) a scheme of arrangement (Scheme) proposed to be made between Aston and the Scheme Shareholders, the terms of which are contained in the Explanatory Statement, a copy of which is at Tab 3 of Exhibit MES2 (the Scheme Booklet);

(b) the Scheme Meeting be held at 10:00am (Brisbane Time) on 16 April 2012, at the Hilton, Level 8, 190 Elizabeth Street, Brisbane QLD;

(c) Mark Anthony James Vaile, or failing him, David John Ryan, be Chairperson of the Scheme Meeting;

(d) the Chairperson of the Scheme Meeting have the power to adjourn the Scheme Meeting in his absolute discretion;

(e) at the Scheme Meeting, a Scheme Shareholder will be entitled to one vote for each fully paid ordinary share in the capital of the Plaintiff that the person is registered as holding at 10.00am (Brisbane time) on 14 April 2012;

(f) the Scheme Booklet be approved for distribution to the Scheme Shareholders;

(g) on or before 15 March 2012 there be dispatched by pre-paid post, or in the case of a member whose registered address is outside the country by prepaid air-mail, addressed to the relevant addresses set out in the register of members of the Plaintiff:

(i) a document substantially in the form of the Scheme Booklet;

(ii) a proxy form substantially in the form of the document at Tab 7 of Exhibit MES1; and

(iii) an envelope addressed to Computershare Investor Services Pty Limited; and

(h) the time by which proxy forms for the Scheme Meeting must be returned is 10.00am (Brisbane time) on 14 April 2012.

2. Regulations 5.6.11, 5.6.11A, 5.6.12 and 5.6.13A to 5.6.36A (inclusive) of the Corporations Regulations 2001 (Cth) shall not apply to the Scheme Meeting.

3. On or before 7 April 2012, the Plaintiff publish a Notice of Hearing substantially in the form of Annexure ‘A’ hereto in The Australian newspaper and the Plaintiff is relieved from compliance with Rule 3.4 of the Federal Court (Corporations) Rules 2000 (Cth) to the extent necessary.

4. The proceedings be stood over to 2:15pm on 18 April 2012 before Justice Jacobson for the hearing of any application to approve the Scheme.

5. There be liberty to apply on one day’s notice.

6. These Orders be entered forthwith.

Note: Entry of orders is dealt with in rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Although, in the present case, the exercise price is greater than the scheme consideration, I do not see any relevant difference to the reasoning adopted by Mansfield J in Re Hostworks Group. CONCLUSION The written submissions of counsel address a number of other issues, which commonly arise in relation to the convening of scheme meetings at the first court hearing. It is unnecessary to repeat what is set out in the written submissions. I was satisfied, for the reasons contained in the written submissions and of course for the reasons referred to above, that I ought to make orders convening the scheme meeting and the other orders contained in the draft short minutes of order handed to me this morning by Mr Wood.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.