In the matter of Centro Properties Limited and CPT Manager Limited in its capacity as responsible entity of Centro Property Trust [2011] NSWSC 1465

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Centro Properties Limited and CPT Manager Limited in its capacity as responsible entity of Centro Property Trust [2011] NSWSC 1465 Hearing dates: 24, 25 November 2011 Decision date: 01 December 2011 Jurisdiction: Equity Division - Corporations List Before: Barrett J Decision: Approval under Corporations Act s 411(4)(b) to be given; ancillary orders to be made. Catchwords: CORPORATIONS - arrangements and reconstructions - Part 5.1 scheme of arrangement - approval of scheme by court - interests to be considered not confined to those of persons directly bound - matters beyond direct results to be considered - no basis for considering effect of possible but non-existent alternatives - only available comparison is between status quo and situation the particular scheme will produce - approach to be taken by the court - illegality and public policy considerations -CORPORATIONS - registered managed investment scheme - identification of scheme property - permitted methods of application of scheme property - payment to scheme members - whether distribution to members as members is the only permitted method - CORPORATIONS - directors - duties of directors where company faces insolvency - where money expended to obtain concurrence of members of managed investment scheme through a resolution passed at a meeting - where need for resolution arises from stock exchange listing rules - whether directors bound to seek waiver or de-listing by stock exchange to remove that need Legislation Cited: ASX Listing Rules, rule 11.2 Corporations Act 2001 (Cth), Part 5.1, Part 5.3A, ss 9, 254T, 411(4)(a)(i), 411(4)(b), 601FC(1)(k), 601FC(2), 601NE(1), s 601NF(1), s 601NF(2) Cases Cited: Australian Securities Commission v Marlborough Gold Mines Ltd [1993] HCA 15; (1993) 177 CLR 485 Chief Commissioner of Stamp Duties v Buckle (1995) 38 NSWLR 574 Chief Commissioner of Stamp Duties v Buckle [1998] HCA 4; (1998) 192 CLR 226 CPT Custodian Pty Ltd v Commissioner of State Revenue [2005] HCA 53; (2005) 224 CLR 98 Guinness v Land Corporation of Ireland (1882) 22 Ch D 349 J P Morgan Chase Bank NA v Australian and New Zealand Bank Ltd [2011] NSWSC 1359 Mills v Northern Railway of Buenos Ayres Co (1870) LR 5 Ch App 621 Octavo Investments Pty Ltd v Knight [1979] HCA 61; (1979) 144 CLR 360 Re Alabama, New Orleans, Texas and Pacific Junction Railway Co [1891] 1 Ch 213 Re Australian Mutual Investment & Building Co Ltd (1899) 9 BC (NSW) 62 Re Australian Style Investments Pty Ltd [2009] VSC 128; (2009) 23 VR 253 Re A W Allen Ltd [1930] VLR 251 Re BAT Industries plc (unreported, EWHC Ch, 3 September 1998) Re Central Pacific Minerals NL [2002] FCA 239 Re Centro Properties Ltd [2011] NSWSC 1171 Re Challenge Bank Ltd (1995) 19 ACSR 421 Re Charterarm Investments Pty Ltd [2011] VSC 577 Re City of Melbourne Bank Ltd (1897) 19 ALT 80 Re CSR Ltd [2010] FCAFC 34; (2010) 77 ACSR 592 Re Dorman Long and Co Ltd [1934] 1 Ch 635 Re English Scottish and Australian Chartered Bank [1893] 3 Ch 385 Re Foundation Healthcare Ltd [2002] FCA 742; (2002) 42 ACSR 252 Re International Harvester Co of Australia Pty Ltd [1953] VLR 669 Re London Life Association Ltd (unreported, EWHC Ch, 21 February 1989) Re NRMA Ltd [2000] NSWSC 82; (2000) 33 ACSR 595 Re Northumberland Insurance Co Ltd (No 3) (1977) 3 ACLR 15 Re Savoy Hotel Ltd [1981] Ch 351 Re Seven Network Ltd [2010] FCA 400; (2010) 77 ACSR 701 Re Stork ICM Australia Pty Ltd [2006] FCA 1849; (2006) 25 ACLC 208 Re Theatre Freeholds Ltd (1996) 20 ACSR 729 Richardson v Mellish (1824) 2 Bing 229; 130 ER 294 Smartec Capital Pty Ltd v Centro Properties Ltd [2011] NSWSC 495; (2011) 83 ACSR 46 Smartec Capital Pty Ltd v Centro Properties Ltd [2011] FCA 716 Spies v The Queen [2000] HCA 43; (2000) 201 CLR 603 Trevor v Whitworth (1887) 12 App Cas 409 Walker v Wimborne [1976] HCA 7; (1976) 137 CLR 1 Westfield Qld No 1 Pty Ltd v Lend Lease Real Estate Investments Ltd [2008] NSWSC 516 Texts Cited: M B Oakes SC in K Dharmanda, A Papamatheos and J Khoshy (eds), "Schemes of Arrangement", Federation Press, 2010. Category: Principal judgment Parties: Centro Properties Limited - First Plaintiff CPT Manager Limited in its capacity as responsible entity of Centro Property Trust - Second Plaintiff PricewaterhouseCoopers - Defendant Representation: Mr F Gleeson SC/Mr J R Williams - Plaintiffs Mr R G McHugh SC/Mr D F C Thomas - Defendant Mr P D Crutchfield SC/Mr R M Foreman - Signing Senior Lenders by leave Mr W A D Edwards - Richard Kirby by leave Freehills - Plaintiffs Mallesons Stephen Jaques - Defendant Arnold Bloch Leibler - Signing Senior Lenders Maurice Blackburn Pty Limited - Richard Kirby File Number(s): 2011/00283647