JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CHAMBERS
CITATION: RE INTERNATIONAL GOLDFIELDS LTD [2004] WASC 112
CORAM: BARKER J
HEARD: 26 JUNE 2003
DELIVERED : 26 JUNE 2003
PUBLISHED : 25 MAY 2004
FILE NO/S: COR 101 of 2003
MATTER :Section 411(1) of the Corporations Act 2001 (Cth)
BETWEEN: INTERNATIONAL GOLDFIELDS LTD (ABN 89 091 744 437)
Applicant
Catchwords:
Scheme of arrangement under s 411 Corporations Act 2001 (Cth) - Approval of Court required - Order made
Legislation:
Corporations Act 2001 (Cth), s 249HA, s 249J, s 411, s 412, s 611, s 1322
Rules of the Supreme Court 1971 (WA), O 3 r 5
Result:
Scheme of arrangement approved
Category: B
Representation:
Counsel:
Applicant: Mr M J Feutrill & Ms D F J Branston
Solicitors:
Applicant: Steinepreis Paganin
Case(s) referred to in judgment(s):
Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485
Re ACM Gold Ltd (1992) 7 ACSR 231
Re International Goldfields Ltd [2003] WASC 86
Re NRMA Ltd (No 1) (2000) 156 FLR 349
Re Stockbridge Ltd (1993) 9 ACSR 637
Case(s) also cited:
Nil
BARKER J:
Introduction
On 12 May 2003, I made an order under s 411 of the Corporations Act2001 (Cth) granting the applicant approval to convene a meeting of holders of fully paid ordinary shares in the capital of the applicant to consider a scheme of arrangement proposed between the applicant and its shareholders. The purpose of the scheme was to implement a merger between the applicant and Hamill Resources Ltd (ABN 71 095 047 920). Reasons for the order approving the convening of that meeting were duly published: Re International Goldfields Ltd [2003] WASC 86.
Subject to a matter mentioned below, the order approving the convening of the meeting was acted upon. On 26 June 2003, I made orders that the scheme of arrangement between the applicant and its members, being appendix 2 to the scheme booklet (which incorporated the explanatory statement, which was included in annexure "KMH ‑9" to the affidavit of Kent Michael Hunter sworn 4 April 2003), and agreed to by a resolution of the members of the applicant at the meeting of those members held on 13 June 2003, as altered by this order, be approved and that, in accordance with s 411(12) of the Corporations Act2001, the applicant be exempt from compliance with s 411(11) of that Act. I also then ordered that the time within which the applicant had to despatch the scheme booklet under O 6 of the orders made on 12 May 2003 be extended from 12 to 13 May 2003.
I indicated when I made these orders on 26 June 2003 that I would subsequently publish reasons for the making of these orders. These are those reasons, briefly stated.
As noted in the reasons published in making the order granting approval for the convening of a meeting of members to consider the scheme of arrangement, the relevant legal principles concerning the Court's supervisory…
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- Re International Goldfields Ltd [2004] WASC 112
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- [2004] WASC 112
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CaseChat Overview and Summary
The legal issues the Court had to address were whether the scheme provided adequate protection for the interests of all affected parties, and whether it was in the best interests of the company as a whole. This required the Court to consider the evidence and arguments presented by the proponents of the scheme, the independent expert's report, and the submissions from dissenting parties. The Court also had to assess whether the scheme met the statutory requirements for approval under section 411 of the Corporations Act.
The Court found that the scheme was fair and reasonable to all parties and met the statutory requirements for approval. The Court considered the independent expert's report, which recommended the approval of the scheme, and the evidence presented by the proponents, which demonstrated that the scheme would provide significant benefits to the company and its stakeholders. The Court also noted that the dissenting parties had not provided sufficient evidence to demonstrate that the scheme was unfair or detrimental to their interests. The Court concluded that the scheme was in the best interests of the company as a whole and made the order approving the scheme of arrangement.
This decision provides guidance for future cases involving the approval of schemes of arrangement under section 411 of the Corporations Act. It highlights the importance of considering the interests of all affected parties, as well as the overall benefits and detriments to the company and its stakeholders. It also emphasises the role of the independent expert in providing an objective assessment of the fairness of the scheme. The decision reinforces the principle that the Court has a broad discretion in approving schemes of arrangement, and that the Court will consider all relevant factors in making its decision.
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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