Spectur Limited, in the matter of Spectur Limited

Spectur Limited applied to the Federal Court for an extension of the time period within which it could issue cleansing notices for certain shares it had issued. The application was brought under section 708A of the Corporations Act 2001 (Cth). The dispute involved no trading in the shares since their issue and the question of whether there would be any substantial injustice if the orders were made. The court was tasked with determining whether there was a proper basis for extending the time period and whether the orders should have retrospective effect.

The court examined the legislative framework and the purpose of section 708A, which is to provide a safeguard against improper share issues. It found that there was a proper basis for extending the time period, as the shares had not been traded since their issue and no substantial injustice would result from making the orders. The court declined to make the orders with retrospective effect, as this was not sought by the applicant. The court was satisfied that the applicant had demonstrated a proper basis for the extension and that no substantial injustice would result from making the orders.

In light of the above, the court granted the application in part, extending the time period within which Spectur Limited could issue cleansing notices. The court ordered that a copy of the orders be served on the Australian Securities and Investments Commission and on ASX Limited as soon as reasonably practicable. Spectur Limited was also required to publish an ASX announcement and a copy of the orders on its website. Any person who claimed to have suffered substantial injustice or was likely to suffer substantial injustice by the making of the orders had the liberty to apply to vary or discharge them for a period of 28 days from the publication of the ASX announcement. There was no order as to costs.