In the matter of Weebit Nano Limited [2023] NSWSC 43

In the matter of Weebit Nano Limited [2023] NSWSC 43

The Court was satisfied that the failure to issue the cleansing notice was inadvertent and honest, and that granting an extension of time and ancillary relief would cause no prejudice to third parties or substantial injustice, justifying relief under s 1322(4) of the Corporations Act 2001 (Cth).

Parties
Plaintiff: Weebit Nano Limited
Jurisdiction
Australia
Judgment Date
02 February 2023
Procedural Posture
Originating Process / First Instance Ex Tempore Judgment
Outcome
Orders made extending the period for issuing cleansing notice and granting associated relief.
Legal Topics
Cleansing Notice, Securities, Disclosure Obligations, Extension of Time, Relief Under Corporations Act S 1322
Corporations Law Equity Cleansing Notice Securities Disclosure Obligations Extension of Time Relief Under Corporations Act S 1322

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Parties

Weebit Nano Limited

Plaintiff

Procedural Posture

Originating Process / First Instance Ex Tempore Judgment

Legal Issues

  1. 1 Whether the period for issuing a cleansing notice under s 708A of the Corporations Act 2001 (Cth) should be extended due to inadvertent failure
  2. 2 Whether relief should be granted under s 1322 of the Corporations Act 2001 (Cth) for errors in issuing cleansing notices relating to share issues

Ratio Decidendi

The Court was satisfied that the failure to issue the cleansing notice was inadvertent and honest, and that granting an extension of time and ancillary relief would cause no prejudice to third parties or substantial injustice, justifying relief under s 1322(4) of the Corporations Act 2001 (Cth).

Court Disposition

Orders made extending the period for issuing cleansing notice and granting associated relief.

Orders

  • The period for issuing a cleansing notice under s 708A of the Corporations Act 2001 (Cth) is extended to 27 January 2023 for shares issued on 21 and 22 December 2022.
  • The cleansing notice given on 27 January 2023 is deemed to have effect as if given on the dates of issue of the shares.