Veta Ltd & Anor v Evans & Ors

This matter concerned an application by Veta Ltd and another party for an interlocutory injunction to restrain the respondents, Evans and others, from proceeding with a proposed scheme of arrangement. The applicants sought to prevent the respondents from voting on or approving the scheme, which they alleged was oppressive and unfairly prejudicial to their interests as minority shareholders. The application was heard by McHugh J in chambers.

The central legal issue before the court was whether the applicants had established a sufficient prima facie case to warrant the grant of an interlocutory injunction. This involved determining whether the applicants had demonstrated a real likelihood of success in their substantive claim that the scheme of arrangement was oppressive under the relevant corporations legislation, and whether the balance of convenience favoured the granting of the injunction.

McHugh J considered the principles governing the grant of interlocutory injunctions, including the need for a serious question to be tried and the assessment of the balance of convenience. His Honour examined the applicants' allegations of oppression, which included claims of inadequate disclosure and a lack of independent advice regarding the scheme. The court weighed the potential harm to the applicants if the injunction were refused against the potential harm to the respondents if the injunction were granted.

The application for an interlocutory injunction was dismissed.