European Lithium Limited, in the matter of European Lithium Limited [2017] FCA 894

European Lithium Limited, in the matter of European Lithium Limited [2017] FCA 894

Orders for validation and relief from civil liability were granted because the contravention arose from an honest mistake, no substantial injustice would be caused, sellers acted honestly, all statutory requirements for relief were satisfied, and public policy supports the relief granted.

Jurisdiction
Australia
Judgment Date
26 July 2017
Procedural Posture
Corporations Application / Final Judgment
Outcome
Orders validating sales and relieving sellers from civil liability granted; no order as to costs.
Legal Topics
['validation of Share Trading' 'cleansing Notices' 'disclosure Requirements' 'relief From Civil Liability']
['corporations Law'] ['validation of Share Trading' 'cleansing Notices' 'disclosure Requirements' 'relief From Civil Liability']

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Procedural Posture

Corporations Application / Final Judgment

Legal Issues

  1. 1 ['Whether trading in shares issued without valid cleansing notices should be validated under s 1322(4)(a) of the Corporations Act 2001 (Cth)' 'Whether sellers should be relieved from civil liability arising from breach of disclosure provisions under ss 707(3) and 727(1)']

Ratio Decidendi

Orders for validation and relief from civil liability were granted because the contravention arose from an honest mistake, no substantial injustice would be caused, sellers acted honestly, all statutory requirements for relief were satisfied, and public policy supports the relief granted.

Court Disposition

Orders validating sales and relieving sellers from civil liability granted; no order as to costs.

Orders

  • ['Validity declared for sale/offering of 13,326,666 shares issued 8 June 2017 to 10 July 2017 despite cleansing notice defects and lack of disclosure.' 'Sellers of these shares relieved from civil liability for breach of ss 707(3) and 727(1).' 'Validity declared for sale/offering of 6,859,036 shares issued 15 June...