Vita Group Ltd, in the matter of Vita Group Ltd [2023] FCA 400

FEDERAL COURT OF AUSTRALIA

Vita Group Ltd, in the matter of Vita Group Ltd [2023] FCA 400 File number(s): NSD 252 of 2023

Judgment of: JACKMAN J

Date of judgment: 1 May 2023

Catchwords: CORPORATIONS – scheme of arrangement – first Court hearing – application for orders under s 411 of the Corporations Act 2001 (Cth) that company convene meeting of its members to consider scheme of arrangement – where the payment of a dividend is conditional or contingent – potential disenfranchisement of a member who has appointed a proxy but attends meeting virtually – court hearings for schemes of arrangement should be conducted in alignment with the overarching purpose of the civil practice and procedure provisions – evidentiary requirements for schemes of arrangement – whether Court approval required for communications with shareholders other than the explanatory statement – ex parte obligations of the plaintiff company in schemes of arrangement

Legislation: Corporations Act 2001 (Cth) Pts 2G.2, 5.1, 9.5, ss 249Y, 254T, 260A, 411, 1319 Evidence Act 1995 (Cth) s 79 Federal Court of Australia Act 1976 (Cth) Pt VB, s 37M Corporations Regulations 2001 (Cth) reg 5.1.01, Sch 8, cll 8303 and 8306 Federal Court (Corporations) Rules 2000 (Cth) rr 1.3, 2.4, 3.2, 3.3, 3.4 Federal Court Rules 2011 (Cth) r 23 Jurisdiction of Courts (Cross-Vesting) Act 1993 (ACT) s 4 Trustee Act 1925 (ACT) s 63

Cases cited: Chellaram v Chellaram [1985] Ch 409 Ewing v Orr Ewing (1883) 9 App Cas 34 International Finance Trust Co Ltd v NSW Crime Commission (2009) 240 CLR 319 Kumova v Davison (No 2) [2023] FCA 1 National Commercial Bank v Wimborne (1978) 5 BPR 11,958 Permanent Trustee Co Ltd v National Australia Managers Ltd (unreported, Sup Ct, NSW, McLelland CJ in Eq, 3033 of 1994, 5 August 1994) Re AGL Ltd [2022] NSWSC 576 Re Andean Resources Ltd [2010] FCA 1190 Re APN News & Media Ltd [2007] FCA 770; (2007) 62 ACSR 400 Re Beyond International Ltd [2022] NSWSC 1649 Re BTA Institutional Services Australia Ltd [2009] NSWSC 1294 Re Central Pacific Minerals NL [2002] FCA 239 Re Centro Retail Ltd [2011] NSWSC 1321 Re Citadel Group Ltd [2020] FCA 1580; (2020) 148 ACSR 598 Re Coates Hire Ltd (No 2) [2007] FCA 2105 Re Constantinou [2012] QSC 332; [2013] 2 Qd R 219 Re CSR Ltd [2010] FCAFC 34; (2010) 183 FCR 358 Re Dion Investments Pty Ltd [2013] NSWSC 1941 Re Dion Investments Pty Ltd [2014] NSWCA 367; (2014) 87 NSWLR 753 Re GetSwift Ltd [2020] FCA 1382 Re Hills Motorway Ltd [2002] NSWSC 897; (2002) 43 ACSR 101 Re Investa Listed Funds Management Ltd [2016] NSWSC 344 Re Isentia Group Ltd [2021] NSWSC 910 Re Isentia Group Ltd [2021] NSWSC 1069 Re Mirvac Ltd [1999] NSWSC 457; (1999) 32 ACSR 107 Re Oz Minerals Ltd [2023] FCA 197 Re Permanent Trustee Co Ltd [2002] NSWSC 1177 Re ResApp Health Ltd [2022] NSWSC 1353 Re RXP Services Ltd [2021] FCA 38 Re Sienna Cancer Diagnostics Ltd [2020] FCA 899 Re Simavita Holdings Ltd [2013] FCA 1274 Re Spark Infrastructure RE Ltd [2021] NSWSC 1385 Re Spark Infrastructure RE Ltd [2021] NSWSC 1564 Re Tabcorp Holdings Ltd [2022] NSWSC 448 Re Tassall Group Ltd [2022] NSWSC 1414 Re Think Childcare Ltd [2021] FCA 1042 Re Uniti Group Ltd [2022] FCA 671; (2022) 160 ACSR 602 Re Webb; Webb v Rogers (1992) 57 SASR 193 Thomas A. Edison Ltd v Bullock (1912) 15 CLR 679 Walsh & Company Investments Ltd [2020] NSWSC 1746 Damian T and Rich A, Schemes, Takeovers and Himalayan Peaks (4th ed, 2021) Law Council of Australia, Submission in response to Treasury consultation paper "Corporate control transactions in Australia: consultation on options to improve schemes of arrangement, takeover bids, and the role of the Takeovers Panel", 6 June 2022