Re Caeneus Minerals Ltd

The applicant, Caeneus Minerals Ltd, sought relief from the Federal Court of Australia in relation to 31 instances of securities issued between April 2014 and October 2017 without the required disclosure. The court was required to decide whether to declare the offers and sales of these securities as not invalid due to the failure to issue a cleansing notice and to relieve the sellers from any civil liability arising from the contravention of sections 707(3) and 727(1) of the Corporations Act 2001. The court considered the evidence provided by the applicant, including the testimony of the former company secretary, and determined that the failures to issue cleansing notices were not due to a blatant disregard for statutory obligations. The court found that the applicant had made genuine efforts to comply with the disclosure requirements and that the failures were largely administrative in nature.

The court granted the relief sought by the applicant, declaring that the offers and sales of the securities in question were not invalid due to the failure to issue a cleansing notice and relieving the sellers from any civil liability arising from the contravention of sections 707(3) and 727(1) of the Corporations Act. The court made orders to the effect that the applicant's securities would be reinstated on the Australian Securities Exchange, and that any person who claimed to have suffered substantial injustice could apply to vary or discharge the orders within 28 days of the reinstatement and publication of the orders. The court made no order as to costs.