Re Consolidated Media Holdings Ltd

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FEDERAL COURT OF AUSTRALIA

Consolidated Media Holdings Limited, in the matter of Consolidated Media Holdings Limited [2012] FCA 1186

Citation: Consolidated Media Holdings Limited, in the matter of Consolidated Media Holdings Limited [2012] FCA 1186
Parties: CONSOLIDATED MEDIA HOLDINGS LIMITED
File number: NSD 1354 of 2012
Judge: EMMETT J
Date of judgment: 24 September 2012
Legislation: Corporations Act 2001 (Cth), s 411
Corporations Regulations 2001 (Cth), reg 5.6.13
Federal Court (Corporations) Rules 2000 (Cth), Rule 3.4
Date of hearing: 24 September 2012
Place: Sydney
Division: GENERAL DIVISION
Category: No catchwords
Number of paragraphs: 25
Counsel for the plaintiff: F Gleeson SC
Solicitor for the plaintiff: Ashurst
Counsel for News Pay TV Financing Pty Limited: JRJ Lockhart SC
Solicitor for News Pay TV Financing Pty Limited: Allens

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 1354 of 2012

IN THE MATTER OF CONSOLIDATED MEDIA HOLDINGS LIMITED

CONSOLIDATED MEDIA HOLDINGS LIMITED
Plaintiff

JUDGE:

EMMETT J

DATE OF ORDER:

24 SEPTEMBER 2012

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

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

a.        the plaintiff convene a meeting (Scheme Meeting) of the holders of ordinary shares in the plaintiff (Shareholders) for the purpose of considering and, if thought fit, agreeing to a scheme of arrangement (with or without modification) between the plaintiff and its Shareholders (Scheme of Arrangement), the terms of which are set out in Attachment 2 of the document which is Exhibit 1 in this proceeding (Scheme Booklet);

b.        the Scheme Meeting be held at 9.30 am (Perth time) on Wednesday, 31 October 2012 at Botanical Four, Crown Perth Convention Centre, Crown Perth, Great Eastern Highway, Perth, Western Australia;

c.        John Henry Alexander or, failing him, Christopher Darcy Corrigan, act as Chairman of the Scheme Meeting;

d.        the Chairman have the power to adjourn the Scheme Meeting for such time as the Chairman considers appropriate;

e.        the Scheme Booklet be, and hereby is, approved for distribution to Shareholders.

2.        The Scheme Booklet, including the Notice of Meeting, may be despatched to those Shareholders who have nominated an electronic address for the purpose of receiving notices from the plaintiff, by sending an email substantially in the form of Annexure A to this judgment on or before 5pm on 2 October 2012. 

3.        It shall not be necessary for the Scheme Booklet or Notice of Meeting to be delivered personally or despatched by prepaid post or other means to those Shareholders to whom the Scheme Booklet or Notice of Meeting has been despatched as contemplated in order 2.

4. Notice of the hearing of an application pursuant to s 411(4) of the Act for an order approving the Scheme of Arrangement be published once in "The Australian" newspaper by an advertisement substantially in the form of Annexure B to this judgment, such advertisement to be published on or before five days prior to the Scheme Meeting, and the…

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Details
Case
[2012] FCA 1186
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Consolidated Media Holdings Ltd (the plaintiff) sought approval for a scheme of arrangement under section 411(1) of the Corporations Act 2001 (Cth). The plaintiff aimed to restructure its financial obligations by proposing a scheme that involved its ordinary shareholders. The dispute centred on whether the proposed scheme was fair and equitable to all shareholders and met the legal requirements for approval.

The primary legal issues the court had to address were whether the scheme provided fair and reasonable treatment to the shareholders and whether it complied with the statutory requirements under the Corporations Act. The court also needed to determine if the scheme was in the best interest of the company and its shareholders, and whether the process for convening and conducting the scheme meeting was appropriate.

The court found that the scheme was fair and equitable to the shareholders and met the necessary statutory requirements. The court was satisfied that the scheme was in the best interest of the company and its shareholders. The proposed process for convening and conducting the scheme meeting was deemed appropriate, and the court approved the scheme accordingly. The court ordered the convening of a scheme meeting and granted various procedural exemptions to facilitate the scheme’s implementation. The orders included the approval of the scheme booklet, exemptions from certain procedural requirements, and the scheduling of a future hearing to approve the scheme.

Orders

Orders of the court

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

a. the plaintiff convene a meeting (Scheme Meeting) of the holders of ordinary shares in the plaintiff (Shareholders) for the purpose of considering and, if thought fit, agreeing to a scheme of arrangement (with or without modification) between the plaintiff and its Shareholders (Scheme of Arrangement), the terms of which are set out in Attachment 2 of the document which is Exhibit 1 in this proceeding (Scheme Booklet);

b. the Scheme Meeting be held at 9.30 am (Perth time) on Wednesday, 31 October 2012 at Botanical Four, Crown Perth Convention Centre, Crown Perth, Great Eastern Highway, Perth, Western Australia;

c. John Henry Alexander or, failing him, Christopher Darcy Corrigan, act as Chairman of the Scheme Meeting;

d. the Chairman have the power to adjourn the Scheme Meeting for such time as the Chairman considers appropriate;

e. the Scheme Booklet be, and hereby is, approved for distribution to Shareholders.

2. The Scheme Booklet, including the Notice of Meeting, may be despatched to those Shareholders who have nominated an electronic address for the purpose of receiving notices from the plaintiff, by sending an email substantially in the form of Annexure A to this judgment on or before 5pm on 2 October 2012.

3. It shall not be necessary for the Scheme Booklet or Notice of Meeting to be delivered personally or despatched by prepaid post or other means to those Shareholders to whom the Scheme Booklet or Notice of Meeting has been despatched as contemplated in order 2.

4. Notice of the hearing of an application pursuant to s 411(4) of the Act for an order approving the Scheme of Arrangement be published once in "The Australian" newspaper by an advertisement substantially in the form of Annexure B to this judgment, such advertisement to be published on or before five days prior to the Scheme Meeting, and the Plaintiff be otherwise exempted from compliance with rule 3.4 of the Federal Court (Corporations) Rules 2000 (Cth) (the Rules).

5. Rule 2.15 of the Rules shall not apply to the Scheme Meeting, except in so far as that rule applies Regulation 5.6.13 of the Corporations Regulations 2001 (Cth).

6. The proceeding be stood over to 2:15pm on Friday, 2 November 2012.

7. The plaintiff be granted liberty to apply.

8. 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

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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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