MG Constructions Pty Ltd v Radroc Pty Ltd [2013] FCA 519

MG Constructions Pty Ltd v Radroc Pty Ltd [2013] FCA 519

The court accepted the independent expert's valuation as proper and binding in the circumstances, found procedural fairness had been afforded to both parties, and ordered the defendant to procure the purchase of the plaintiff's shares at the determined value. The plaintiff's attempt to introduce its own expert report was declined as inconsistent with the appointment of a neutral court expert. Costs were awarded to the defendant as the substantially successful party.

Jurisdiction
Australia
Judgment Date
18 March 2013
Procedural Posture
Shareholder Dispute / Final Judgment With Orders
Outcome
Judgment for the defendant; orders made for share purchase, holding interests on trust, execution of transfer, and payment of costs by the plaintiff.
Legal Topics
['share Buy Back' 'share Valuation' 'costs' 'court Appointed Independent Expert']
['corporations Law'] ['share Buy Back' 'share Valuation' 'costs' 'court Appointed Independent Expert']

Case Brief

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Procedural Posture

Shareholder Dispute / Final Judgment With Orders

Legal Issues

  1. 1 ["Whether the defendant is required to procure purchase of shares registered in the plaintiff's name at the court-determined value" 'Whether the valuation methodology and conclusions of the court-appointed expert are fair' 'Allocation of costs for the proceedings and expert reports']

Ratio Decidendi

The court accepted the independent expert's valuation as proper and binding in the circumstances, found procedural fairness had been afforded to both parties, and ordered the defendant to procure the purchase of the plaintiff's shares at the determined value. The plaintiff's attempt to introduce its own expert report was declined as inconsistent with the appointment of a neutral court expert. Costs were awarded to the defendant as the substantially successful party.

Court Disposition

Judgment for the defendant; orders made for share purchase, holding interests on trust, execution of transfer, and payment of costs by the plaintiff.

Orders

  • ['Defendant to procure Danehill Nominees Pty Ltd to purchase all shares held by plaintiff at $4,920.00 per share.' 'Defendant to hold on trust for plaintiff 10% of any interest arising from the Reading Proceedings and Cockburn Cement Dispute, and account to plaintiff.' 'Parties (including Danehill Nominees) to sign...