FE Limited, in the matter of FE Limited [2017] FCA 1642

FE Limited, in the matter of FE Limited [2017] FCA 1642

It is just and equitable to grant relief under s 1322(4) because the contravention was due to oversight, parties acted honestly, buyers of shares should not hold invalid shares, and no substantial injustice is shown; mechanisms are provided for affected persons to seek variation or discharge of orders.

Jurisdiction
Australia
Judgment Date
21 December 2017
Procedural Posture
Corporations Act Application / Judgment and Orders
Outcome
Orders granted as sought, validating share sales and relieving sellers from civil liability.
Legal Topics
['share Issue' 'secondary Trading' 'disclosure Requirements' 'non Compliance' 'relief From Civil Liability']
['corporations Law'] ['share Issue' 'secondary Trading' 'disclosure Requirements' 'non Compliance' 'relief From Civil Liability']

Case Brief

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Procedural Posture

Corporations Act Application / Judgment and Orders

Legal Issues

  1. 1 ['Whether trading in shares issued without proper disclosure under ss 707(3) and 727(1) of the Corporations Act should be validated' 'Whether sellers of such shares should be relieved from civil liability']

Ratio Decidendi

It is just and equitable to grant relief under s 1322(4) because the contravention was due to oversight, parties acted honestly, buyers of shares should not hold invalid shares, and no substantial injustice is shown; mechanisms are provided for affected persons to seek variation or discharge of orders.

Court Disposition

Orders granted as sought, validating share sales and relieving sellers from civil liability.

Orders

  • ['Declaration that offer for sale or sale of 10,000,000 shares during period after issue to 24 November 2017 is not invalid due to non-compliance with s 707(3) and s 727(1).' 'Sellers of securities are relieved from civil liability arising out of contravention of s 707(3) and s 727(1).' 'Orders to be served on ASIC...