Valra Pty Ltd v Mag Men Holdings Pty Ltd [2019] FCA 1897

FEDERAL COURT OF AUSTRALIA

Valra Pty Ltd v Mag Men Holdings Pty Ltd [2019] FCA 1897 File number: WAD 294 of 2016

Judge: BANKS-SMITH J

Date of judgment: 20 November 2019

Catchwords: CONTRACT - contract interpretation - sale of shares under compulsory sale provision in shareholders agreement - where company in financial difficulty - where purchaser sought to acquire all shares - where come along clause utilised by company - where offer to shareholders must be on same terms - meaning of same terms - whether offer on arm's length terms - whether pre-conditions to execution of share transfer by company met - where no evidence that shares of any value CONTRACT - whether oral contract established - whether terms sufficiently certain to comprise contractual relationship - where claimed obligation was to vote as block and cooperate CONTRACT - whether good faith requirement in shareholders agreement breached - content of alleged duty - whether obligation of disclosure - whether duties of shareholders analogous to those of partners CORPORATIONS - oppression - claim by former minority shareholder under s 232 of the Corporations Act 2001 (Cth) - whether shareholder entitled to involvement in management decisions - whether use of come along clause oppressive - whether failure to disclose terms of agreements with creditors to compromise debts oppressive - whether use of provision to transfer shares between relatives used improperly - whether commercially unfair

Legislation: Corporations Act 2001 (Cth) s 232

Cases cited: ACI Operations Pty Ltd v Berri Ltd [2005] VSC 201 Australian Competition and Consumer Commission v Geowash Pty Ltd (Subject to a Deed of Company Arrangement) (No 3) [2019] FCA 72 Australian Goldfields NL (in liq) v North Australian Diamonds NL [2009] WASCA 98; (2009) 40 WAR 191 Australian Institute of Fitness Pty Ltd v Australian Institute of Fitness (Vic/Tas) Pty Limited (No 3) [2015] NSWSC 1639 Clarence Property Corporation Ltd v Sentinel Robina Office Pty Ltd [2018] QSC 95; [2019] 1 Qd R 144 Cunningham v Resourceful Land Limited and Ors [2018] EWHC 1185 (Ch) Dosike Pty Ltd v Johnson (1996) 16 WAR 241 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd [1998] NSWSC 413; (1998) 28 ACSR 688 Healey v Commissioner of Taxation [2012] FCA 269 Hillas & Co Ltd v Arcos Ltd [1932] All ER Rep 494 HNA Irish Nominees Ltd v Kinghorn (No 2) [2012] FCA 228 Huppert v Stock Options of Australia Pty Ltd [1965] HCA 30; (1965) 112 CLR 414 Joint v Stephens [2008] VSCA 210 Luna Park (NSW) Ltd v Tramways Advertising Pty Ltd [1938] HCA 66; (1938) 61 CLR 286 M&G Broad European Loan Fund Limited v Hayfin Capital Luxco 2 SARL [2017] EWHC 1756 (Ch) Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2010] NSWCA 268 Mayfair Property Holdings Pty Ltd v Southland Packers Pty Ltd [2016] QSC 27 McCausland v Surfing Hardware International Holdings Pty Ltd [2013] NSWSC 902 McCausland v Surfing Hardware International Holdings Pty Ltd (No 2) [2014] NSWSC 163 Moffatt Property Development Group Pty Ltd v Hebron Park Pty Ltd [2009] QCA 60 Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 New South Wales v Stevens [2012] NSWCA 415; (2012) 82 NSWLR 106 Orrong Strategies Pty Ltd v Village Roadshow Ltd [2007] VSC 1 Paciocco v Australia and New Zealand Banking Group Ltd [2015] FCAFC 50 Re Bright Pine Mills Pty Ltd [1969] VR 1002 Schipp v Cameron [1998] NSWSC 997 Simsmetal Ltd v Wanless Metal Industries Pty Ltd (Unreported, NSWSC, 10 March 1997) Valra Pty Ltd as Trustee for Abdul Rahim Valibhoy Family Trust v Mag Men Holdings Pty Ltd [2016] FCA 23 Wayde v New South Wales Rugby League Ltd [1985] HCA 68; (1985) 180 CLR 459