Re Valmec Ltd

Valmec Limited applied to the court for orders convening a meeting of its shareholders and creditors to consider a scheme of arrangement, as well as orders approving the scheme. The respondents, who were shareholders and creditors of Valmec, opposed the application. The court was required to determine whether the statutory requirements for ordering a scheme meeting were met and whether the scheme itself was fair and reasonable.

The court held that the requirements for ordering a scheme meeting were satisfied as the application met the criteria outlined in section 411(1) of the Corporations Act. The court further examined the fairness and reasonableness of the proposed scheme, considering the interests of all relevant parties. The court concluded that the scheme was fair and reasonable, taking into account the evidence presented and the benefits it would provide to the company and its stakeholders.

Accordingly, the court made orders convening a meeting of Valmec's shareholders and creditors to consider the scheme of arrangement. Additionally, the court made orders approving the scheme. These orders were made on the condition that the scheme was implemented in accordance with the court's directions.