Winpar Holdings Limited v Goldfields Kalgoorlie Limited [2000] NSWSC 728

Reported Decision : (2000) 34 ACSR 737 (2000) 18 ACLC 665

New South Wales Supreme Court

CITATION : Winpar Holdings Limited v Goldfields Kalgoorlie Limited [2000] NSWSC 728 revised - 26/07/2000 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 3125/00 HEARING DATE(S) : 14/07/00, 17/07/00 JUDGMENT DATE : 25 July 2000

In the matter of Goldfields Kalgoorlie Limited (ACN 009 712 092) and the Corporations Law PARTIES : Winpar Holdings Limited (ACN 003 035 523) (Plaintiff) Goldfields Kalgoorlie Limited (ACN 009 712 092) (Defendant) JUDGMENT OF : Santow J

S Blanks (Sol.) (Plaintiff) COUNSEL : M Oakes, SC (Defendant) K Cuneo (ASIC) (Amicus Curiae) SOLICITORS : Stephen Blanks & Associates (Plaintiff) Allen Allen & Hemsley (Defendant) CATCHWORDS : CORPORATIONS — Selective reduction of capital having same economic effect as takeover to eliminate minority — Is there need for entirely separate meeting of holders of shares to be cancelled — Need for scheme of arrangement and relevance if at all of Gambotto principles — meaning of "fair and reasonable" to shareholders "as a whole" in s256B of Corporations Law — Whether any special value from acquiring 100% should have been allocated exclusively to the minority or other than pro rata — Is there guidance from s667C of the Corporations Law — Valuation of gold mining company — Treatment of hedge book — Economic upside — Adequacy of disclosure — Any "dealing" in shares when shares cancelled — Relevance if any of divergent commercial interest of largest minority shareholder with preponderance of minority votes — Stock market price not determinative of what is fair and reasonable in particular circumstances of trading. Companies (NSW) Code 1981, s123 LEGISLATION CITED : Company Law Review Act 1998 Corporations Law Part 2J.1, s256A, s256B and s256C, s411, s663B, s664C, s665B, s667A, s667C of Ch 6A , s701, s1322, s1324 Trade Practices Act 1974 (Cth) s52 Re Advance Bank Australia Ltd (1996-97) 22 ACSR 513 Re Albert Street Properties Ltd (1997) 23 ACSR 318 Boland v Yates Property Corporation Pty Ltd (2000) 74 ALJR 209 Catto v Ampol Ltd (1989) 7 ACLC 717 Commonwealth v Milledge (1953) 90 CLR 157 Fraser v NRMA Holdings Ltd (1995) 55 FCR 452 CASES CITED : David Grant & Co Pty Ltd v Westpac Banking Corporation (HC) (1995) 13 ACLC 1572, 18 ACSR 225 Gambotto v W C P Limited and Anor [1994-1995] 180 CLR 432 Holt v Cox (1994-1995) 15 ACSR 313 Melcann Ltd v Super John Pty Ltd (1995) 13 ACLC 92 Nicron Resources Ltd v Catto (1992) 8 ACSR 219 Re Shine Fisheries Ltd (1994) 12 ACSR 627 Thornett v Federal Commissioner of Taxation (1938) 59 CLR 787 Re Tiger Investment Company Limited (2000) 33 ACSR 437 DECISION : Injunction denied.