Re Equinox Resources Ltd

Equinox Resources Ltd, an Australian corporation, applied to the Supreme Court of Western Australia for approval of a scheme of arrangement under Section 411 of the Corporations Act 2001 (Cth) that would see all its issued shares exchanged for shares in a Canadian incorporated company. The court needed to decide whether the scheme was fair and equitable to all shareholders, if proper procedures were followed, and if any statutory requirements had been complied with. The court found that the scheme had been properly presented to the shareholders, who had overwhelmingly approved it, and that there was no modification to the rights of shareholders or creditors. The court also found that the scheme did not require the approval of the Foreign Investments Review Board, as it was outside the scope of the Foreign Acquisitions and Takeovers Act 1975. The Australian Securities and Investments Commission also had no objection to the scheme. Therefore, the court approved the scheme of arrangement.