In the matter of MacMahon Holdings Limited (ACN 007 634 406) [2008] FCA 1079

In the matter of MacMahon Holdings Limited (ACN 007 634 406) [2008] FCA 1079

The Court extended time under s 1325A(2) because MacMahon's failure to apply for quotation within the time required by s 625(3)(c)(i) resulted from inadvertent administrative oversight, the omission was discovered and addressed promptly, ASX had subsequently approved the application subject to conditions, ASIC and Ausdrill did not oppose relief, and Ausdrill shareholders had not suffered real prejudice or loss from the delay. Section 1325A(2) was the most appropriate source of power because it specifically deals with contraventions of s 625 and provides broad remedial relief.

Jurisdiction
Australia
Judgment Date
22 July 2008
Procedural Posture
Corporations Application for Remedial Relief in Relation to an Off Market Takeover Bid / Application for Declarations or Extension of Time; Orders Made and Reasons Delivered
Outcome
Extension of time granted.
Legal Topics
['takeovers' 'off Market Takeover Bids' 'quotation of Securities' 'extension of Time' 'remedial Orders' 'inadvertent Non Compliance']
['corporations Law'] ['takeovers' 'off Market Takeover Bids' 'quotation of Securities' 'extension of Time' 'remedial Orders' 'inadvertent Non Compliance']

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Procedural Posture

Corporations Application for Remedial Relief in Relation to an Off Market Takeover Bid / Application for Declarations or Extension of Time; Orders Made and Reasons Delivered

Legal Issues

  1. 1 ['Whether time should be extended for MacMahon Holdings Limited to comply with s 625(3)(c)(i) of the Corporations Act 2001 (Cth) after failing to apply to ASX for quotation within 7 days after the start of the bid period.' 'Whether s 1325A(2) of the Corporations Act 2001 (Cth) was the most appropriate source of power and form of relief in circumstances involving non-compliance with s 625(3)(c)(i).']

Ratio Decidendi

The Court extended time under s 1325A(2) because MacMahon's failure to apply for quotation within the time required by s 625(3)(c)(i) resulted from inadvertent administrative oversight, the omission was discovered and addressed promptly, ASX had subsequently approved the application subject to conditions, ASIC and Ausdrill did not oppose relief, and Ausdrill shareholders had not suffered real prejudice or loss from the delay. Section 1325A(2) was the most appropriate source of power because it specifically deals with contraventions of s 625 and provides broad remedial relief.

Court Disposition

Extension of time granted.

Orders

  • ["For the purposes of the offers described in Appendix A to the plaintiff's bidder's statement dated 22 May 2008, the compliance with s 625(3)(c)(i) of the Corporations Act 2001 (Cth) is extended until 11 July 2008." 'The plaintiff and all other interested or affected parties have liberty to apply to vary these...