City Pacific Limited, in the matter of; City Pacific Limited ACN 079 453 955 v Bacon (No 2) [2009] FCA 772

FEDERAL COURT OF AUSTRALIA

City Pacific Limited, in the matter of; City Pacific Limited ACN 079 453 955 v Bacon (No 2) [2009] FCA 772 CORPORATIONS – challenge to the effectiveness of a purported change of responsible entity pursuant to s 601FM of the Corporations Act 2001 (Cth) (the "Act") – proper construction of s 601FM – whether s 601FM requires one resolution or two separate resolutions – whether the purported removal and replacement of the responsible entity under s 601FM is invalid, ineffective or void having regard to s 601FJ, Division 2 and the Act as a whole – whether adoption of resolutions at a meeting is a procedural irregularity for the purposes of ss 1322(1) & (2) of the Act – whether failure to conduct two separate votes pursuant to s 601FM was a procedural irregularity – whether invalidity cured by s 1322(2) – whether an order should be made under s 1332(4) validating any invalidity

Corporations Act 2001 (Cth) Division 2 of Part 5C.2, ss 249D, 249L, 252L, 253E, 436A, 601FA, 601FJ, 601FK, 601FM, 601NB, 601NE, 601NF, 1322

Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 discussed MTM Funds Management Ltd v Cavalane Holdings Pty Ltd (2000) 158 FLR 121 considered re Barber (1886) 17 QBD 259 discussed Latitude Fisheries Pty Ltd v Minister for Primary Industries & Energy (1993) 41 FCR 536 discussed Walker v Wilson (1991) 172 CLR 195 discussed David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 distinguished BP Australia Ltd v Brown (2003) 58 NSWLR 322 distinguished Re Westpac Banking Corporation (2004) 53 ACSR 288 considered Howard v Mechtler (1999) 30 ACSR 434 cited Cordiant Communications Australia Pty Ltd v The Communications Group Holdings Pty Ltd (2005) 55 ACSR 185 followed Wagner v International Health Promotions (1994) 15 ACSR 419 distinguished Mamouney v Soliman (1992) 9 ACSR 63 approved Peters' American Delicacy Co Ltd v Heath (1938-1939) 61 CLR 457 followed Shorter Oxford Dictionary (4th ed, Oxford University Press, 1993) The Macquarie Dictionary (4th ed, The Macquarie Library, 2005) CITY PACIFIC LIMITED ACN 079 453 955 AS THE RESPONSIBLE ENTITY FOR THE CITY PACIFIC FIRST MORTGAGE FUND ARSN 088 139 477 and CITY PACIFIC LIMITED ACN 079 453 955 AS THE RESPONSIBLE ENTITY FOR THE CITY PACIFIC INCOME FUND v RODGER BACON (AS AGENT FOR THE "REQUISITIONING MEMBERS", TRILOGY FUNDS MANAGEMENT LIMITED ACN 080 383 679, BALMAIN NB CORPORATION LIMITED ACN 107 505 760, THOSE PARTIES JOINED IN THESE PROCEEDINGS PURSUANT TO PARAGRAPH 3 OF THE ORDER OF DOWSETT J MADE ON 23 JUNE 2009, BALMAIN TRILOGY INVESTMENT MANAGEMENT PTY LTD ACN 136 832 945 and TOM W POWERS