Australian Co-operative Foods Limited (Application of) [2001] NSWSC 382

(2001) 162 FLR 360 (2001) 38 ACSR 71 Reported Decision : (2001) 19 ACLC 1120 [2001] NSWSC 382 [2001] ACL Rep 435 NSW 3

New South Wales Supreme Court

CITATION : Australian Co-operative Foods Limited (Application of) [2001] NSWSC 382 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 1231/00 HEARING DATE(S) : 17/04/00, 29/05/00, 10/07/00, 21/08/00, 16/10/00, 12/02/01, 26/03/01, 04/04/01, 06/04/01, 09/04/01, 11/04/01, 12/04/01, 24/04/01, 27/04/01, 30/04/01, 07/05/01, 08/05/01, 10/05/01, 14/05/01 JUDGMENT DATE : 14 May 2001

Australian Co-operative Foods Limited (ABRN 010 308 068) and the Co-operatives Act 1992 PARTIES : The application of Australian Co-operative Foods Limited (ABRN 010 308 068) (Plaintiff) JUDGMENT OF : Santow J

M B Oakes, SC/F Gleeson (Plaintiff) T Stuart (Registrar of Co-operatives) COUNSEL : S D Rares, SC (Objector, Mr Emery) P M Stern (Solicitor) (Expert Witness) B R McClintock (Woolworths) SOLICITORS : Addisons (Plaintiff) CATCHWORDS : CORPORATIONS LAW — Scheme of Arrangement for co-operative — Role of expert — Compatibility and harmony with Corporations Law principles — Application to circumstances of members some of whom have no vote — Fairness principles and Gambotto where plebiscite employed — Share and creditors' scheme — Need to differentiate — Analogies drawn from Corporations Law principles — No reduction of capital in co-operative under statutory regime applicable — Power to amend scheme after approval — Clause re no prescribed occurrences by analogy to takeover — Disclosure issues — Recording what occurs at pre-voting meetings and help-line — Need for impartiality and for documents to speak for themselves. Co-operatives Act 1992 (NSW) Pt 13; s127; s139-140; s175; s176 s181; s189; s269; s344; s345; s353; s354-5; s368; s369 LEGISLATION CITED : Corporations Law s411 Financial Services Reform Bill 2001 (Cth) cl. 648J Trade Practices Act s45(8) Re AGL Gas Networks Limited (Santow J [2000] NSWSC 165, 20 March 2000, unreported) Re Bond Corp Holdings Ltd (1991) 5 ACSR 304 Re BTS Barings & Transmission Supplies Pty Limited (1983) 8 ACLR 287 Cleary & Anor v Australia Co-operative Foods Limited & Ors (Nos 2 and 3) (1999) 32 ACSR 701 CMPS & F Pty Limited v Crooks Mitchell (1997) 24 ACSR 367 and subsequently in (1997) 24 ACSR 728 Re Chevron (Sydney) Ltd [1963] VR 249 Re Dorman Long & Co Ltd [1934] Ch 635 CASES CITED : Gambotto v WCP Ltd (1995) 182 CLR 432 Re Glendale Land Development Ltd (in Liq) [1982] 2 NSWLR 563 Heydon v NRMA Limited & Ors (2001) 36 ACSR 462 Re Midland Coal Coke & Iron Co [1895] 1 Ch 267 Re Namoi Cotton Co-operative Limited (1997-98) 26 ACSR 694 Nordic Bank PLC v International Harvester (Aust) Ltd (sub nom Re International Harvester (Aust) Ltd) (1983) 7 ACLR 796 NRMA Limited (1999-2000) 33 ACSR 595 Sovereign Life Assurance Co v Dodd [1892] 2 QB 573 DECISION : Creditors' Scheme meeting convened.