Aberfoyle Ltd v Western Metals Ltd [1998] FCA 744

FEDERAL COURT OF AUSTRALIA CORPORATIONS - takeover scheme - whether Part A statement defective - whether unpaid capital is part of offeror's "own funds" for the purposes of cl 11(a) of s 750 of the Corporations Law - whether offeror's analysis of the value of the target company's shares is material information for the purposes of cl 17 of s 750 - whether breach of s 698 requires proof of mens rea - meaning of "benefit" in s 698(2) - in what capacity must an offer to a shareholder be made to contravene s 698(2) - whether offer of shares in the offeror constitutes a benefit under s 698(2) - whether an unconditional contract to purchase shares is a benefit under s 698(2) - nature of "defeating condition" in s 662(2) - meaning of "sole control" in s 662(2) - whether parties are associates for the purposes of a particular reference - whether a crossing on SEATS is in the ordinary course of trading on a stock market - meaning of "underwriting" considered WORDS AND PHRASES - meaning of "benefit", "defeating condition" "sole control" and "underwriting" considered Corporations Law ss 34, 662(2), 698(2), 698(5), 750

A.G. (Vic) v Walsh's Holdings Ltd [1973] VR 137 considered and followed in part Albert v Votraint No 320 Pty Ltd (1987) 13 ACLR 336 mentioned Ampolex Ltd v Mobil Exploration & Producing Australia Pty Ltd (1996) 65 FCR 503 mentioned Australian Investment Trust Ltd v Strand & Pitt Street Properties (1931) 31 SR(NSW) 266 on appeal [1932] AC 735 mentioned Boral Energy Resources Ltd v TU Australia (Queensland) Pty Ltd (unreported, Santow J, Supreme Court of New South Wales, 6 May 1998) mentioned Cuming-Smith & Co Ltd v Westralian Farmers Co-operative Ltd (1978) 3 ACLR 906 mentioned Gammon Ltd v AG (Hong Kong) [1985] 1 AC discussed Gantry Acquisition Corp v Parker & Parsley Petroleum Australia Pty Ltd (1994) 51 FCR 554 considered and followed Gjergja v Cooper [1987] VR 167 at 217 applied Green v Crusader Oil NL (1985) 10 ACLR 120 considered He Kaw Teh v R (1985) 157 CLR 523 mentioned ICAL Ltd v County Natwest Securities (Aust) Ltd (1988) 13 ACLR 129 mentioned North Sydney Brick & Tile Co Ltd v Darvall (1986) 5 NSWLR 662 followed Proudman v Dayman (1941) 67 CLR 536 mentioned Re Licensed Victuallers Mutual Trading Association; Ex parte Audain [1889] 42 ChD 1 mentioned Sagasco Amadeus Pty Ltd v Magellan Petroleum Australia Ltd (1992) 9 ACSR 162 on appeal (1993) 177 CLR 508 considered and followed Samic Ltd v Metals Exploration Ltd (1993) 60 SASR 300 on appeal (1994) 181 CLR 109 mentioned Sandell v Porter (1966) 115 CLR 666 mentioned Unity APA v Humes Ltd.(1986) 13 ACLR 501 mentioned ABERFOYLE LIMITED v WESTERN METALS LIMITED VG 3170 of 1998 FINKELSTEIN J 19 JUNE 1998