HotCopper has news, discussion, prices and market data on SONS OF GWALIA LIMITED. The case then went to the High Court as Webb’s case. A class action followed on behalf of 600 shareholders who had purchased shares shortly before the company’s failure. For the importance attached to continuous disclosure laws, see Australian Securities and Investment Commission v Chemeq Ltd (2006) 58 ACSR 169; Sons of Gwalia Ltd … In Sons of Gwalia's case, the gold division saw EBIT gain 27% to $73.7m, helped by A$302 an ounce margins, even though its costs aren't the lowest among the listed gold miners. Facts On 18 August 2004, Margaretic purchased 20,000 shares in Sons of Gwalia. appeal in Sons of Gwalia Ltd (Subject to Deed of Company Arrang ement) v Margaretic (2006) 56 ACSR 585; [2006] FCAFC 17. this Case Study began, after Sons of Gwalia and Orica agreed on the project scope, with the objective of characterising the ore fragmentation achieved under different blasting regimes and linking this to the performance of the downstream comminution processes. In 2007, the High Court of Australia in Sons of Gwalia v Margaretic decided that the claims of a shareholder against a company for misleading and deceptive conduct by it which resulted in the shareholder purchasing shares in the company were not subordinated to the claims of unsecured creditors or the company. 17 The concept of statut ory contract was discussed by McH ugh … His name was entered on the register of members on 23 August 2004. The administrators argued that it was Parliament’s intention that section 600H applies to administrations. the Sons of Gwalia appeal The Full Court (Justices Finkelstein, Gyles and Jacobson) heard the Sons of Gwalia appeal on 1 December 2005 and delivered three separate, but concurring, judgments on 27 February 2006.6 Essentially, there were two questions before the court: • Is the effect of Webb that transferee shareholders The purchase took place on the market conducted by the ASX. Note, as all seven members of the High Court wrote their own reasons for decision, it is difficult to discern common threads in the reasons of the majority. The decision of the High Court of Australia in Sons of Gwalia Ltd v Luka Margaretic sent shockwaves through the business community when the judgment was handed down on 31 January 2007. creditors’ rights.13 A good illustration of this is the Sons of Gwalia case itself. Matter No S209/2006. Sons of Gwalia was an Australian gold mining company (with a stock market capitalisation of approximately $600 million six months prior to insolvency) that was placed in voluntary administration in August 2004. When a Company enters into insolvency, it is a requirement that the claims of Creditors are paid in full, prior to any funds being available to the shareholders. September 13, 2004 – Last week Sons of Gwalia, one of Australia’s largest gold mining companies, declared bankruptcy. Section 563A of the Corporations Act 2001 (Cth) provided: “Payment of a debt owed by a company to a person in the person’s capacity as a member of the company, whether by way of dividends, profits or otherwise, is … At first instance, Emmett J dismissed the administrators’ application and granted the shareholder’s cross‑claim. Sons of Gwalia Ltd v Margaretic; Sons of Gwalia Ltd v Margaretic - Research Paper Example. It is being labeled as an $800 million collapse, but the betting is that the company’s liabilities will top $1 billion when the debt on its balance sheet … The Corporations Amendment (Sons of Gwalia) Bill 2010 (Bill) will amend section 563A of the Corporations Act 2001 to postpone ‘subordinate claims’ made in external administration until all other claims against the company are satisfied. Gleeson CJ, Gummow, Kirby, Hayne, Callinana, Heydon, Crennan JJ. Respondents. PDF RTF: Before Gleeson CJ, Gummow, Kirby, Hayne, Callinan, Heydon, Crennan JJ Catchwords. It was argued that, in purchasing shares, they had been misled by the company’s lack of disclosure of This case note explores both the Trial Judge and Full Federal Court decision, before concluding with a discussion of the practical implications of the decision. The Sons of Gwalia matter basically comes down to a decision of the High Court of Australia in January 2007 whereby by a shareholder was allowed to prove against the Company as a Creditor. Sons of Gwalia Ltd v Margaretic [2007] HCA 1 ING Investment Management LLC v Margaretic 231 CLR 160; 81 ALJR 525; 232 ALR 232 31 Jan 2007 Case Number: S208/2006 S209/2006. Sons of Gwalia had no way out - its hedge book was about $350 million underwater at June 30 on a mark-to-market basis and a rising Australian dollar … Tweet . On 29 January 2009 the Corporations and Markets Advisory Committee issued a report on the decision made in the 2007 Sons of Swalia case. Here is an American perspective on the Sons of Gwalia High Court ruling written by Bracewell & Giuliani an international US law firm on July 27, 2007. The QRx Case. CSA is the peak professional body delivering accredited education and the most practical and authoritative training and information on governance, as well as thought leadership in the field. 9 Sons of Gwalia Ltd v Margaretic [2006] 226 ALR 42. Matter No S208/2006. case should be abrogated by legislation in order to provide certainty in this technical area of the law. Sons of Gwalia Decision - Misled Shareholders as Potential Creditors by Nicholas Dunstone, Henry Davis York Released February 2007. Join the HotCopper ASX share market forum today for free. The Sons of Gwalia administration became a landmark case in Australian corporate history after thousands of shareholders were allowed to join the list of unsecured creditors following a controversial High Court ruling two years ago. QRx was factually similar to Sons of Gwalia. The administrators have sold Sons of Gwalia’s assets. decision in Sons of Gwalia which reinterpreted a longstanding provision of the law. 5 There is nothing in the majority judgments in Sons of Gwalia that would confine the principles in that case to persons who had purchased shares during the period of the corporate breach. 15 See above n.12 at [128]. Case Law; Sons of Gwalia Ltd v Margaretic. of Australia the, The potentially decision case in for question serious, the cost is consequences of 'Sons unsecured of Gwalia borrowing of a Limited recent by In Sons of Gwalia, the High Court of Australia found that shareholders who had been allegedly induced into purchasing shares in a company shortly prior to its insolvency by misrepresentations and inadequate market disclosure were able to lodge claims as creditors in the company’s voluntary administration. 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