In the matter of Kollakorn Corporation Limited [2020] NSWSC 1549

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Kollakorn Corporation Limited [2020] NSWSC 1549 Hearing dates: 30 October 2020 Date of orders: 30 October 2020 Decision date: 03 November 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Orders made validating issue of shares in contravention of ss 707(3) and 727(1) of the Corporations Act and relieving any on-sellers from liability. Catchwords: CORPORATIONS — Capital raising — Shares issued in contravention of ss 707(3) and 727(1) of Corporations Act 2001 (Cth) — Mistake where s 708A(5)(e) exemption not in fact available — Whether to validate issue and subsequent on sales under s 1322(4) of the Corporations Act 2001 (Cth) — Honest mistake — Where no substantial injustice to any persons. Legislation Cited: - Corporations Act 2001 (Cth), ss 707(3), 708A, 727(1), 1322(4)(a) Cases Cited: - Australian Securities & Investments Commission v Axis International Management Pty Ltd (No 5) (2011) 81 ACSR 631; [2011] FCA 60 - Re Austpac Resources N.L. [2010] NSWSC 1438 - Re European Lithium Ltd [2017] FCA 894 - Re Golden Gate Petroleum Ltd (2010) 77 ACSR 17; [2010] FCA 40 - Re ICandy Interactive Ltd (2018) 125 ACSR 369; [2018] FCA 533 - Re Silver Lake Resources Ltd (2012) 87 ACSR 436; [2012] FCA 32 - Re Sprint Energy Ltd [2012] FCA 1354 Category: Principal judgment Parties: Kollakorn Corporation Limited (Plaintiff) Representation: Counsel: H Grace (Plaintiff)