Re Telstra Corporation Ltd

Case [2022] NSWSC 1180


Supreme Court


New South Wales

Medium Neutral Citation: In the matter of Telstra Corporation Limited [2022] NSWSC 1180
Hearing dates: 23 August 2022
Date of orders: 23 August 2022
Decision date: 02 September 2022
Jurisdiction:Equity - Corporations List
Before: Black J
Decision:

Order made convening scheme meeting in respect of proposed scheme and approving the scheme booklet for distribution to shareholders.

Catchwords:

CORPORATIONS – Arrangements and reconstructions – Schemes of arrangement or compromise – Application under s 411 of the Corporations Act 2001 (Cth) for orders convening meeting of members to consider and, if thought fit, to agree to proposed scheme of arrangement to implement corporate restructuring – Whether requirements to order scheme meeting are satisfied.

Legislation Cited:

- Corporations Act 2001 (Cth), ss 110C-110E, 249R, 411, 412, 413, 1319

- Corporations Amendment (Meetings and Documents) Act 2022 (Cth)

- Securities Act of 1993 (US)

Cases Cited:

- Barrick (Australia Pacific Exploration) Pty Ltd v Barrick (PD) Australia Pty Ltd [2017] FCA 998

- FT Eastment & Sons Pty Ltd v Metal Roof Decking Supplies Pty Ltd (1977) 3 ACLR 69

- JP Morgan Operations Australia Limited v JP Morgan Australia Group Pty Limited [2018] FCA 1131

- Lendlease RL (Rowville) Pty Ltd v Lendlease Capital Service Pty Ltd [2018] FCA 1601

- Mercedes-Benz Financial Services Australia Pty Limited v Daimler Truck Financial Services Australia Pty Limited [2021] FCA 1279

- Re AGL Ltd [2022] NSWSC 576

- Re Anglo-Gaelic Investments Pty Ltd [2019] NSWSC 441

- Re Application of AGL Sydney Ltd (1994) 13 ACSR 597

- Re Atlassian Corporation Pty Ltd [2013] FCA 1451

- Re Australian Pharmaceutical Industries Ltd [2022] FCA 103

- Re BINGO Industries Ltd [2021] NSWSC 798

- Re Cytopia Ltd [2009] VSC 560

- Re Ellerston Global Investments Ltd [2020] NSWSC 879

- Re Foster’s Group Ltd (No 2) [2011] VSC 547

- Re Hills Motorway Ltd (2002) 43 ACSR 101

- Re Link Administration Holdings Limited [2022] NSWSC 650

- Re Macquarie Private Capital A Ltd [2008] NSWSC 32

- Re Ovato Print Pty Ltd [2020] NSWSC 1882

- Re RXP Services Limited [2021] FCA 38

- Re Simavita Holdings Limited [2013] FCA 1274

- Re Tabcorp Holdings Ltd [2022] NSWSC 448

- Re Vault Intelligence [2020] FCA 1342

- Re Villa World Ltd [2019] NSWSC 1207

- Re Westfield Corporation Ltd (No 2) [2018] NSWSC 921

- Re Woolworths Group Ltd [2019] FCA 1810

- Royal Victorian Institute for the Blind Ltd v RBS.RVIB.VAF Ltd (2004) 206 ALR 581

- Warrnambool Cheese & Butter Factory Company Limited v Warrnambool Cheese & Butter Factory Company Holdings Limited [2017] FCA 302

Category:Principal judgment
Parties: Telstra Corporation Limited (Plaintiff)
Telstra Group Limited (First Defendant)
Telstra Limited (Second Defendant)
Representation:

Counsel:
Mr N Young QC/Mr B K Holmes (Plaintiff)

Solicitors:
King & Wood Mallesons (Plaintiff)
File Number(s): 2022/199865

Judgment

Nature of the application

  1. By Originating Process filed on 8 July 2022, Telstra Corporation Limited (“Telstra”), applies under ss 411 and 1319 of the

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Details
AGLC
Re Telstra Corporation Ltd [2022] NSWSC 1180
Case
[2022] NSWSC 1180
Decision Date

CaseChat Overview and Summary

The case of Re Telstra Corporation Ltd involved the telecommunications company Telstra and its proposed corporate restructuring scheme. The dispute centred around the validity of the application made under section 411 of the Corporations Act 2001 (Cth) to convene a meeting of members to consider and potentially approve the scheme of arrangement. The matter was brought before the Federal Court of Australia.

The primary legal issue before the court was whether the requirements stipulated in section 411 of the Corporations Act for ordering a scheme meeting were satisfied. Specifically, the court needed to determine if the application met the necessary criteria for convening the meeting, including whether the requisite number of shareholders had supported the application and if the proposed scheme was properly presented to the court. The court also had to assess if the scheme was fair and reasonable to the shareholders and if it complied with the relevant provisions of the Act.

The court examined the application and supporting documents meticulously. It found that the requisite shareholder support was indeed present and that the application complied with procedural requirements. The court also considered the fairness and reasonableness of the proposed scheme, finding it to be adequate. Consequently, the court ruled that the requirements of section 411 were met, and it ordered the convening of a meeting of members to consider the scheme. This decision allowed the process of restructuring to proceed as planned by Telstra.

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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