Laserbond Limited (ACN 057 636 692), in the matter of Laserbond Limited (ACN 057 636 692) [2007] FCA 2056

Laserbond Limited (ACN 057 636 692), in the matter of Laserbond Limited (ACN 057 636 692) [2007] FCA 2056

The one-day administrative delay in lodging required documents for ASX listing does not justify invalidating the securities' issue under the prospectus, where there was no dishonesty or intentional breach, and no substantial injustice results. In these circumstances, the court should exercise its discretion under s 1322(4) and s 254E to extend the relevant period and validate the issue of shares and options.

Jurisdiction
Australia
Judgment Date
19 December 2007
Procedural Posture
Corporations – Application for Orders Relating to a Late ASX Listing / Final Judgment and Orders After Application for Relief Due to Administrative Error
Outcome
Orders made granting extension of time and validating issue of shares and options
Legal Topics
['asx Listing' 'extension of Time for Listing' 'validation of Share and Option Issues' 'corporations Act 2001 (cth) Ss 254 E, 723, 724, 1322']
['corporations Law'] ['asx Listing' 'extension of Time for Listing' 'validation of Share and Option Issues' 'corporations Act 2001 (cth) Ss 254 E, 723, 724, 1322']

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Procedural Posture

Corporations – Application for Orders Relating to a Late ASX Listing / Final Judgment and Orders After Application for Relief Due to Administrative Error

Legal Issues

  1. 1 ['Whether the late lodgement with the ASX (by one day) invalidates the issue of shares and options under the prospectus' 'Whether the period for admission to quotation by the ASX can be extended under s 1322(4) of the Corporations Act' 'Whether the court should validate the issue of shares and options pursuant to ss 254E and 1322 of the Corporations Act']

Ratio Decidendi

The one-day administrative delay in lodging required documents for ASX listing does not justify invalidating the securities' issue under the prospectus, where there was no dishonesty or intentional breach, and no substantial injustice results. In these circumstances, the court should exercise its discretion under s 1322(4) and s 254E to extend the relevant period and validate the issue of shares and options.

Court Disposition

Orders made granting extension of time and validating issue of shares and options

Orders

  • ['The period in ss 723(3)(b) and 724(1)(b)(ii) of the Corporations Act is extended to 5 business days after the order for ASX quotation of the securities.' 'Subject to admission to quotation within that period: (a) The issue of shares pursuant to the prospectus is validated and confirmed under s 254E. (b) The issue...