Re Westfield Corporation Limited (No 2)

Westfield Corporation Limited applied to the court for approval of a proposed scheme of arrangement, under section 411 of the Corporations Act 2001 (Cth). The court was asked to determine whether the scheme was fair and reasonable to members of relevant classes of the company. A significant issue arose when new information became available after a securityholders' meeting, which the securityholders had not had the opportunity to consider. The court had to decide if this new information constituted an important supervening event that materially altered the scheme.

The court examined the nature of the new information and whether it was significant enough to be considered an important supervening event. The court considered that an important supervening event is one that materially alters the scheme and is not merely an expected risk of the investment. The court held that the new information did materially alter the scheme, as it impacted the value and risks associated with the investment. The court concluded that the scheme was no longer fair and reasonable, given the new information that emerged after the securityholders' meeting.

As a result of the court's decision, the application for approval of the scheme was dismissed. The court found that the scheme was no longer fair and reasonable to members of the relevant classes due to the important supervening event that materially altered the scheme. The court did not grant the orders sought by Westfield Corporation Limited.