Isles v Daily Mail Newspaper Limited [1912] HCA 18

fistamax Fol Cons Cos res 28 vise ercantile Co tag ALR 362 14 C.L.R.] OF AUSTRALIA. 193 (HIGH COURT OF AUSTRALIA.} ISLES 5 3 : i i ; . 3 APPELLANT ;

PLAINTIFF, AND THE DAILY MAIL NEWSPAPER LIMITED)

AND OTHERS . ' " . al RESPONDEN DEFENDANTS,

ON APPEAL FROM THE SUPREME COURT OF QUEENSLAND.

Company debentures—Modification of rights of debenture holders by majority—Com- H. C. or A, promise or arrangement—Jurisdiction—Companies Act Amendment Art 1889 1912.

(Qd.) (53 Viet. No. 18), sec. od BRISBANE, The holders of three-fourths in value of certain debentures issued by & 45,1 29, 36

Company were empowered to modify the rights of all the debenture holders, § May 1. by sanctioning any modification proposed hy the Company, or any com-

3 Grifith ©.J., promise or arrangement which would under the Companies Act Amendment Sarton and Act 1889 be such as the Court would have jurisdiction to sanction. (eeeOth

Held, that an arrangement that the debenture holders should accept fully paid up shares in a new Company in satisfaction of the debenture debt was a compromise that the Court would have jurisdiction to sanction, and having been bond fide agreed to by the required majority was binding on all the debenture holders.

Held also, that whether some other proposal was or might have been more beneficial did not affect the validity of the compromise.

Decision of the Supreme Court (Cooper C.J.) affirmed.

AppeAL from the Supreme Court of Queensland.

The plaintiff, who sued on behalf of himself and all other holders of a series of 300 debentures issued by the defendants, the Daily Mail Newspaper Ltd. (hereinafter called "the old

VOL. XIV. 13

H.C. or A. 1912. a) Istes

v

Datty Mart

NEWSPAPER Lrp.

HIGH COURT f1912.

Company "), brought an action against that Company and the Queensland Daily Mail Ltd. (hereinafter called " the new Com- pany "), asking for a declaration that certain agreements made in September 1908 and November 1910 between the old Company and certain of the debenture holders was not binding on him.