Arc Energy Limited, In the matter of Arc Energy Limited [2008] FCA 1396

Arc Energy Limited, In the matter of Arc Energy Limited [2008] FCA 1396

The scheme of arrangement was approved because the majority of shareholders present were properly informed, risks were addressed in the scheme booklet, allegations by Oil Basins were not substantiated, and no evidence indicated proxy voters would have changed their decision with more notice. The application for adjournment was refused as being brought late, with vague grounds, and possibly for an ulterior commercial motive.

Jurisdiction
Australia
Judgment Date
08 August 2008
Procedural Posture
Corporations Approval of Scheme of Arrangement / Final Orders After Interlocutory Application to Intervene
Outcome
Scheme of arrangement approved. Intervener's application for adjournment refused.
Legal Topics
['scheme of Arrangement' 'approval of Schemes Under Corporations Act' "court's Discretion Under S 411" 'notice to Shareholders' 'rights of Interveners']
['corporations Law'] ['scheme of Arrangement' 'approval of Schemes Under Corporations Act' "court's Discretion Under S 411" 'notice to Shareholders' 'rights of Interveners']

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Procedural Posture

Corporations Approval of Scheme of Arrangement / Final Orders After Interlocutory Application to Intervene

Legal Issues

  1. 1 ['Whether the scheme of arrangement should be approved under the Corporations Act 2001 (Cth)' 'Whether insufficient notice was given to proxy shareholders regarding litigation commenced by Oil Basins Limited' 'Whether adjournment of scheme approval should be granted to allow further notice']

Ratio Decidendi

The scheme of arrangement was approved because the majority of shareholders present were properly informed, risks were addressed in the scheme booklet, allegations by Oil Basins were not substantiated, and no evidence indicated proxy voters would have changed their decision with more notice. The application for adjournment was refused as being brought late, with vague grounds, and possibly for an ulterior commercial motive.

Court Disposition

Scheme of arrangement approved. Intervener's application for adjournment refused.

Orders

  • ['Buru Energy Limited joined as a party.' 'Scheme in annexure DDK7 approved under ss 411(4)(b) and 411(6) Corporations Act 2001 (Cth).' 'Plaintiff exempted from compliance with s 411(11) of the Act in relation to scheme.' 'Abridged time for service of interlocutory process.' 'Oil Basins Limited given leave to...