Application for orders convening scheme meeting under s 411(1) of the Corporations Act 2001 (Cth)
Whether requirements to order scheme meeting are satisfied
Quick Take
1At the first court hearing for a scheme of arrangement under s 411(1) of the Corporations Act, the court's standard of review is whether the proposed scheme is not inappropriate and is one that sensible businesspeople might consider is of benefit to members; issues of fairness are primarily reserved for the second court hearing.
2A voting intention statement, without more, does not create or give rise to an acquisition of a relevant interest in shares under the Corporations Act, and is not sufficient to support a contention that there is an arrangement between the relevant parties.
3Where shareholder objections primarily go to the fairness of a proposed scheme, they do not prevent orders being made at the first court hearing for convening the scheme meeting, as fairness is a matter for the second court hearing.
