EHR Resources Ltd, in the matter of EHR Resources Ltd [2018] FCA 997

EHR Resources Ltd, in the matter of EHR Resources Ltd [2018] FCA 997

Relief under s 1322(4) was granted as the contraventions were due to honest error, placees acted inadvertently, steps were taken to rectify by issuing a prospectus, and no substantial injustice was caused by granting the orders which protected the interests of current shareholders and the integrity of share trading.

Jurisdiction
Australia
Judgment Date
28 June 2018
Procedural Posture
Corporations Application / Final Judgment and Orders
Outcome
Application allowed; orders made declaring trades not invalid and relieving from civil liability.
Legal Topics
['share Trading' 'disclosure Obligations' 'relief From Civil Liability' 'cleansing Notice']
['corporations Law'] ['share Trading' 'disclosure Obligations' 'relief From Civil Liability' 'cleansing Notice']

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Procedural Posture

Corporations Application / Final Judgment and Orders

Legal Issues

  1. 1 ['Whether sales of quoted securities in breach of disclosure obligations under Corporations Act 2001 (Cth) should be declared not invalid' 'Whether sellers should be relieved from civil liability for contraventions of s 707(3) and s 727(1) of the Corporations Act' 'Whether cleansing notice under s 708A(5)(e) was sufficient disclosure']

Ratio Decidendi

Relief under s 1322(4) was granted as the contraventions were due to honest error, placees acted inadvertently, steps were taken to rectify by issuing a prospectus, and no substantial injustice was caused by granting the orders which protected the interests of current shareholders and the integrity of share trading.

Court Disposition

Application allowed; orders made declaring trades not invalid and relieving from civil liability.

Orders

  • ['Trades of 19,500,000 ordinary shares between 18 April 2018 and 20 June 2018 are not invalid for failure to comply with disclosure obligations under the Corporations Act.' 'Trades of 1,611,111 ordinary shares between 15 June 2018 and 20 June 2018 are not invalid for failure to comply with disclosure obligations...