Pacific Current Group Limited v Fitzpatrick [2024] FCA 1480

Federal Court of Australia Pacific Current Group Limited v Fitzpatrick [2024] FCA 1480 File number:

Judgment of: BEACH J

Date of judgment: 18 December 2024

Catchwords: CORPORATIONS — merger of assets between Australian company and US company – Australian and US funds management boutiques – creation of unit trust – whether proper due diligence carried out by directors of Australian company – whether proper asset valuations undertaken – necessity for shareholders' approval – whether disposal of main undertaking – listing rule 11.2 of ASX listing rules – whether merger transaction in breach of the Australian company's constitution – whether transaction ultra-vires – nature of interest in the WHV dividend and appreciation rights agreement – whether proper due diligence carried out concerning the WHV agreement – duties of chief executive officer – duties of chairman of the board – duties of non-executive directors – whether breaches of s 180(1) of the Corporations Act 2001 (Cth) – business judgment rule – questions of causation

Legislation: Corporations Act 2001 (Cth) ss 180, 185, 189, 191, 195, 236, 237, 674, 1041, 1317H, 1317S, 1318 Agricultural Land Management Ltd v Jackson (No 2) (2014) 48 WAR 1 Australian Securities and Investments Commission v Avestra Asset Management Ltd (in liq) (2017) 348 ALR 525 Australian Securities and Investments Commission v Cassimatis (No 8) (2016) 336 ALR 209 Australian Securities and Investments Commission v Fortescue Metals Group Ltd (2011) 190 FCR 364 Australian Securities and Investments Commission v Lindberg (2012) 91 ACSR 640 Australian Securities and Investments Commission v Mariner Corporation Ltd (2015) 241 FCR 502 Australian Securities and Investments Commission v Mitchell (No 2) (2020) 382 ALR 425 Australian Securities and Investments Commission v Rich (2009) 75 ACSR 1 Australian Securities Commission v Cracow Resources Ltd, unreported, NSWSC, 12 August 1993 BC9305041 Aveo Group Ltd v State Street Australia Ltd [2015] FCA 1019 AWA Ltd v Daniels (t/as Deloitte Haskins & Sells) (1992) 7 ACSR 759 Bishopsgate Investment Management Ltd (in liq) v Maxwell (No 2) [1994] All ER 261 Cases cited: BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Cassimatis v Australian Securities and Investments Commission (2020) 275 FCR 533 Daniels (formerly practising as Deloitte Haskins & Sells) v Anderson (1995) 37 NSWLR 438 Donaldson v Natural Springs Australia Ltd [2015] FCA 498 DSHE Holdings Ltd (Receivers and Managers) (in liq) v Potts (2022) 163 ACSR 23 Expectation Pty Ltd v Pinnacle VRB Ltd [2001] WASC 144 Hancock v Rinehart [2015] NSWSC 646 Hillig v Darkinjung Pty Ltd (2006) 57 ACSR 733 Jones v Dunkel (1959) 101 CLR 298 Re International Vending Machines Pty Ltd and the Companies Act [1962] NSWR 1408 TPT Patrol Pty Ltd v Myer Holdings Ltd (2019) 293 FCR 29 Woolworths Ltd v Kelly (1991) 22 NSWLR 189 Zytan Nominees Pty Ltd v Laverton Gold NL (1988) 1 WAR 227