CITATION: Macquarie Communications Infrastructure Group; In the matter of [2009] NSWSC 487 HEARING DATE(S): 1 May 2009 JURISDICTION: Equity Division
Corporations ListJUDGMENT OF: Brereton J EX TEMPORE JUDGMENT DATE: 1 May 2009 DECISION: Order convening scheme meeting and approving explanatory statement, subject to minor amendments. Advice that trustee would be justified in convening meeting and circulating explanatory statement, and that proposed amendment to trust constitution within power. CATCHWORDS: CORPORATIONS – Schemes – application for order convening meeting and approving explanatory statement – triple-stapled securities – concurrent corporation, trust and foreign schemes – deemed warranty – necessity for effect to be spelt out in explanatory statement – TRUSTS – Judicial advice – application for judicial advice in respect of proposed trust scheme LEGISLATION CITED: (CTH) Corporations Act 2001, s 441(1), s 601GC
(NSW) Trustee Act 1925, s 63CATEGORY: Principal judgment CASES CITED: Re Abacus Funds Management Ltd [2005] NSWSC 1309; (2005) 24 ACLC 211
Re Adelaide Bank Limited [2007] FCA 1582
Re Bank of Adelaide (1979) 22 SASR 481
Re Macquarie Capital Alliance Ltd [2008] NSWSC 745; (2008) 67 ACSR 484
Re Macquarie Goodman Funds Management Ltd [2004] NSWSC 1197; (2004) 52 ACSR 194
Re Macquarie Private Capital A Limited [2008] NSWSC 323; (2008) 26 ACLC 366
Re Mirvac Limited [1999] NSWSC 457; (1999) 32 ACSR 107PARTIES: 2233/09 Macquarie Communications Infrastructure Group (plaintiff)
2224/09 Macquarie Communications Infrastructure Management Ltd (plaintiff)FILE NUMBER(S): SC 2223/09; 2224/09 COUNSEL: Mr T Bathurst QC w Mr D Thomas (plaintiffs)
Mr I Jackman SC (CPPIB)SOLICITORS: Freehills (plaintiffs)
IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
CORPORATIONS LIST
BRERETON J
Friday 1 May 2009
2223/09 In the matter of Macquarie Communications Infrastructure Group
2224/09 In the matter of Macquarie Communications Infrastructure Management Ltd
JUDGMENT (ex tempore)
1 HIS HONOUR: By Originating Process filed on 6 April 2009, Macquarie Communications Infrastructure Limited (MCIL) seeks orders pursuant to (CTH) Corporations Act 2001, s 441(1), for the convening of a meeting of its members to consider a scheme of arrangement. By a Summons filed on the same date, Macquarie Communications Infrastructure Management Limited (MCIML) seeks judicial advice pursuant to (NSW) Trustee Act 1925, s 63, as to the propriety of proposed amendments to the Constitution of the Macquarie Communications Infrastructure Trust (MCI Trust).
2 I am deeply indebted to, and have been much assisted by, the comprehensive written submissions of Mr Bathurst QC and Mr Thomas for the plaintiffs. The scheme of arrangement and the proposed amendments to the trust arise from the proposed acquisition by the Canada Pension Plan Investment Board (CPPIB) – via a vehicle named CPPIB Communications Pty Ltd (called the Bidder) – of triple-stapled securities in MCIL (a company incorporated in Australia), the MCI Trust (a management investment scheme registered in Australia), and Macquarie MCG International Limited (MMCGIL) (a Bermuda exempted mutual fund). Together, those entities constitute the Macquarie Communications Infrastructure Group (MCG). The triple-stapled securities in MCG are traded on the ASX.
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- AGLC
- Re Macquarie Communications Infrastructure Group [2009] NSWSC 487
- Case
- [2009] NSWSC 487
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the explanatory statement sufficiently detailed the effect of the deemed warranty. The applicants argued that the explanatory statement adequately explained the effect, while the respondents contended that it did not. Another issue was the necessity of judicial advice for the proposed trust scheme, as the applicants sought advice on the scheme's legality and enforceability.
The court found that the explanatory statement did not sufficiently explain the effect of the deemed warranty, which was necessary for members to understand the consequences of their decision. The court highlighted the need for the explanatory statement to spell out the effect of the warranty explicitly. Regarding the judicial advice, the court held that the applicants were entitled to seek advice from the court to ensure the proposed trust scheme's legality and enforceability, as the scheme's complexity warranted such guidance.
The court declined to approve the explanatory statement due to its insufficiency in detailing the deemed warranty's effect. It also granted the application for judicial advice, recognising the importance of ensuring the proposed trust scheme's legality and enforceability. The court's decision underscored the necessity for clear and explicit explanations in explanatory statements and the value of judicial advice in complex corporate restructurings.
Orders
Orders of the court
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Background
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Evidence Before The Court
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Decision
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Legal Principle Established
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