Oil Basins Limited v Bass Strait Oil Company [2012] FCA 1122

FEDERAL COURT OF AUSTRALIA

Oil Basins Limited v Bass Strait Oil Company [2012] FCA 1122 Citation: Oil Basins Limited v Bass Strait Oil Company [2012] FCA 1122

Parties: OIL BASINS LIMITED v BASS STRAIT OIL COMPANY and SOMERTON ENERGY LIMITED

File number: VID 624 of 2012

Judge: GORDON J

Date of judgment: 16 October 2012

Catchwords: CORPORATIONS – constitution – construction of quorum requirement – unless directors decided differently, quorum required two directors, one of whom must be a managing director – whether directors had decided differently – whether directors can appoint a managing director in the absence of a managing director – validation of managing director's acts after purported appointment CORPORATIONS – ASX Listing Rules – breach of listing rule 7.1 in relation to placement of shares in excess of 15% of company's capital – whether shares issued to underwriter as fee for underwriting services included in calculation of number of shares able to be issued – Court's discretion in relation to enforcement of listing rules – Corporations Act 2001 (Cth), ss 793B, 1101B CORPORATIONS – validation of appointment of managing director – validation of resolution to issue securities – validation of issue of securities – act, matter or thing "essentially of a procedural nature" – whether no substantial injustice has been or is likely to be caused – Corporations Act 2001 (Cth), ss 201M, 1322

Legislation: Corporations Act 2001 (Cth) Federal Court of Australia Act 1976 (Cth)

Cases cited: Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Australian Innovation Ltd v Petrovsky (1996) 14 ACLC 1357 Australian Securities and Investments Commission v McDougall (2006) 57 ACSR 175 AWB Ltd v Cole (No 6) (2006) 235 ALR 308 Barron v Potter [1914] 1 Ch 895 Bateman v Newhaven Park Stud Ltd (2004) 49 ACSR 454 Beck v LW Furniture Consolidated (Aust) Pty Ltd [2012] NSWCA 76 Blair Open Hearth Furnace Company Ltd v Reigart (1913) 108 LT 665 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Elderslie Finance Corp Ltd v Australian Securities Commission (1993) 11 ACLC 787 Gangemi v Osborne [2009] VSCA 297 Holmes v Keyes [1959] Ch 199 at 215 Lion Nathan Australia Pty Ltd v Coopers Brewery Ltd (2006) 156 FCR 1 Nenna v Australian Securities and Investments Commission (2011) 86 ACSR 204 NRMA Ltd v Gould (1995) 18 ACSR 290 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Plaintiff M61/2010E v The Commonwealth (2010) 243 CLR 319 Re Broadway Motors Holdings Pty Ltd (in liq) (1986) 6 NSWLR 45 Re Compaction Systems Pty Ltd & the Companies Act [1976] 2 NSWLR 477 Re Delta Gold Ltd (2001) 40 ACSR 347 Re Duomatic Ltd [1969] 2 Ch 365 Re Golden Gate Petroleum (2010) 77 ACSR 17 Re NRMA Ltd [2003] FCAFC 206 Re Wood Parsons Pty Ltd (in liq) (2002) 21 ACLC 111 Sheahan v Londish (2010) 80 ACSR 337 Stratford Sun Ltd v OM Holdings Ltd (No 5) (2011) 98 FCR 372 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 White v Shortall (2006) 68 NSWLR 650 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522 Winpar Holdings Ltd v Goldfields Kalgoorlie Ltd (2001) 166 FLR 144 Magner, Joske's Law and Procedure at Meetings in Australia (10th ed, 2007)