Classic Minerals Limited, in the matter of Classic Minerals Limited [2018] FCA 2039

Classic Minerals Limited, in the matter of Classic Minerals Limited [2018] FCA 2039

Orders should be made under s 1322(4) of the Corporations Act relieving shareholders from liability in respect of shares issued and on-sold without proper disclosure, as the non-compliance was inadvertent, the relevant persons acted honestly, and no substantial injustice arises.

Jurisdiction
Australia
Judgment Date
12 December 2018
Procedural Posture
Corporations Act Application / Relief Application/final Orders
Outcome
Relief granted; shareholders relieved from liability; share sales validated
Legal Topics
['disclosure Obligations' 'share Issuance' 'cleansing Notices' 'civil Liability Relief' 'validation of Non Compliance']
['corporations Law'] ['disclosure Obligations' 'share Issuance' 'cleansing Notices' 'civil Liability Relief' 'validation of Non Compliance']

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Procedural Posture

Corporations Act Application / Relief Application/final Orders

Legal Issues

  1. 1 ['Whether shareholders should be relieved from civil liability and whether share offers/sales are invalid due to failures to give cleansing notices or prospectus under the Corporations Act 2001 (Cth)']

Ratio Decidendi

Orders should be made under s 1322(4) of the Corporations Act relieving shareholders from liability in respect of shares issued and on-sold without proper disclosure, as the non-compliance was inadvertent, the relevant persons acted honestly, and no substantial injustice arises.

Court Disposition

Relief granted; shareholders relieved from liability; share sales validated

Orders

  • ["The court declared, pursuant to s 1322(4)(a) of the Corporations Act 2001 (Cth), that offers for sale or sales of shares listed in Annexure 'A' during the relevant period are not invalid by reason of failure to issue a cleansing notice or prospectus or for non-compliance with s 707(3), s 727(1)." "Holders of...