Fowler v Lindholm, in the matter of Opes Prime Stockbroking Limited

(2009) 178 FCR 563; [2009] FCAFC 125

Full Court of the Federal Court

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Corporations
2. › Schemes of arrangement
3. › Approval by court under s 411 Corporations Act 2001 (Cth)
4. › Scope of power
5. › Release and indemnity provisions binding creditors in respect of claims against third parties
6. › Whether adequate nexus between release and indemnity and the creditor-company relationship
7. › Whether scheme can bind creditors other than in their capacity as creditors
8. › Corporations Act 2001 (Cth), s 411
1. Corporations
2. › Schemes of arrangement
3. › Approval by court under s 411 Corporations Act 2001 (Cth)
4. › Exercise of discretion
5. › Priority payments to litigation funders and for legal costs
6. › Departure from pari passu distribution
7. › Whether intelligent and honest creditor properly informed might approve scheme
8. › Corporations Act 2001 (Cth), ss 411, 555, 556

Quick Take

Third-party release and indemnity provisions may be included in schemes of arrangement under s 411 of the Corporations Act provided there is an adequate nexus between those provisions and the creditor-company relationship, and the claims released arise out of dealings with the scheme company.