Re Bardoc Gold Ltd [No 2]

Case [2022] WASC 113


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

IN CHAMBERS

CITATION:   RE BARDOC GOLD LTD; EX PARTE BARDOC GOLD LTD [No 2] [2022] WASC 113

CORAM:   STRK J

HEARD:   1 APRIL 2022

DELIVERED          :   1 APRIL 2022

PUBLISHED           :   7 APRIL 2022

FILE NO/S:   COR 22 of 2022

EX PARTE

BARDOC GOLD LTD

Plaintiff

ST BARBARA LTD

Interested Party


Catchwords:

Corporations law - Scheme of arrangement - Proposed share acquisition - Application for orders approving a scheme under Corporations Act 2001 (Cth) - Orders made approving scheme

Legislation:

Corporations Act 2001 (Cth), s 411(4)

Result:

Orders made approving scheme

Category:    B

Representation:

Counsel:

Plaintiff : J M Healy
Interested Party : J Y Wang

Solicitors:

Plaintiff : Steinepreis Paganin
Interested Party : King & Wood Mallesons

Cases referred to in decision:

GetSwift Ltd [2020] FCA 1733

Re Auzex Resources Ltd [No 2] [2012] QSC 101

Re Avoca Resources Ltd [2011] FCA 208

Re Bardoc Gold Ltd; Ex parte Bardoc Gold Ltd [2022] WASC 94

Re CannPal Animal Therapeutics Ltd [No 2] [2021] WASC 83

Re Coles Group (No 2) [2007] VSC 523; (2007) 215 FLR 411

Re Cortona Resources Ltd [No 2] [2013] FCA 302

Re Decimal Software Ltd [No 2] [2018] FCA 2040

Re Foundation Healthcare Ltd [No 2] [2002] FCA 973; (2002) 43 ACSR 680

Re Galaxy Resources Ltd [No 2] [2021] WASC 314

Re Great Artesian Oil and Gas Ltd [No 2] [2008] FCA 1169

Re Macquarie Private Capital A Ltd [2008] NSWSC 323; (2008) 26 ACLC 366

Re Nusantara Resources Ltd [2021] WASC 334

Re Pensana Metals Ltd [2020] WASC 17

Re Petronor E&P Ltd; Ex parte Petronor E&P Ltd [No 2] [2022] WASC 81

Re Piedmont Lithium Ltd [No 3] [2021] WASC 173

Re Rebel Sport Ltd [No 2] [2007] FCA 458

Re Saracen Mineral Holdings Ltd [No 2] [2021] WASC 32

Re Straits Resources Ltd [No 2] [2011] FCA 47

Re Swick Mining Services Ltd [2022] WASC 79

Re TriAusMin Limited [No 2] [2014] FCA 833

Re Valmec Ltd [2021] WASC 420

Re Wesfarmers Ltd; Ex parte Wesfarmers Ltd [No 2] [2018] WASC 357

Re Zenith Energy Ltd [No 3] [2020] WASC 289

STRK J:

Overview

  1. On 1 April 2022, Bardoc Gold Ltd moved for orders approving a scheme of arrangement between Bardoc and its shareholders pursuant to s 411(4), and if necessary s 411(6) of the Corporations Act 2001 (Cth).

  2. Section 411 of the Corporations Act envisages three steps.  First, the court approves the convening of a scheme meeting and the draft explanatory statement to be sent to the scheme members. Secondly, the members vote on the proposed scheme at the scheme meeting.  Thirdly, assuming the first two stages have occurred, a further application to the court for approval of the arrangement.

  3. At the first court hearing on 22 February 2022, orders were made pursuant to s 411(1) of the Corporations Act to convene a meeting of holders of fully paid ordinary shares in the capital of Bardoc (other than…

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AGLC
Re Bardoc Gold Ltd [No 2] [2022] WASC 113
Case
[2022] WASC 113
Decision Date

CaseChat Overview and Summary

The applicant, Bardoc Gold Ltd, sought approval for a scheme of arrangement under the Corporations Act 2001 (Cth) which would result in the acquisition of all its issued shares by a subsidiary of Bardoc Gold Ltd. The scheme was contested by certain minority shareholders who argued that the scheme unfairly disadvantaged them. The matter was heard in the Federal Court of Australia, where the court was required to determine whether the scheme was fair and reasonable to the shareholders of Bardoc Gold Ltd.

The primary legal issues before the court were whether the scheme provided adequate protection to the minority shareholders and whether it was fair and reasonable in all the circumstances. The court examined the fairness of the scheme in accordance with the statutory provisions of the Corporations Act 2001 (Cth). The minority shareholders argued that the scheme undervalued their shares, and that the process was not conducted in a fair and transparent manner. The applicant, on the other hand, submitted that the scheme was fair and reasonable, and that the process was conducted appropriately.

The court found that the scheme was fair and reasonable to all shareholders of Bardoc Gold Ltd. The court determined that the valuation process was robust, and that the scheme provided adequate protection to the minority shareholders. The court also found that the process was conducted in a fair and transparent manner. The court concluded that the minority shareholders had not demonstrated that the scheme was unfair or unreasonable, and that the scheme should be approved. The court made orders approving the scheme of arrangement under the Corporations Act 2001 (Cth).

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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