Sons of Gwalia Ltd v Margaretic; Sons of Gwalia Ltd v Margaretic - Research Paper Example. This case note explores both the Trial Judge and Full Federal Court decision, before concluding with a discussion of the practical implications of the decision. At first instance, Emmett J dismissed the administrators’ application and granted the shareholder’s cross‑claim. Case Law; Sons of Gwalia Ltd v Margaretic. The administrators have sold Sons of Gwalia’s assets. In Sons of Gwalia's case, the gold division saw EBIT gain 27% to $73.7m, helped by A$302 an ounce margins, even though its costs aren't the lowest among the listed gold miners. Mr Margaretic was the representative shareholder in a class action of about 8000 8 Sons of Gwalia Ltd (admin apptd) v Margaretic [2005] FCA 1305. This followed a High Court decision in the Sons of Gwalia case, in which the court found that the claims of some shareholders in the failed gold miner were not subordinate to other claims. When a Company enters into insolvency, it is a requirement that the claims of Creditors are paid in full, prior to any funds being available to the shareholders. Sons of Gwalia Ltd v Margaretic [2007] HCA 1 ING Investment Management LLC v Margaretic 231 CLR 160; 81 ALJR 525; 232 ALR 232 31 Jan 2007 Case Number: S208/2006 S209/2006. (2006) 25 ARELJ Members as Creditors: Sons of Gwalia Limited 91 2. Technical Solutions 12 Gummow J at [35]. CSA is the peak professional body delivering accredited education and the most practical and authoritative training and information on governance, as well as thought leadership in the field. Join the HotCopper ASX share market forum today for free. and. Note, as all seven members of the High Court wrote their own reasons for decision, it is difficult to discern common threads in the reasons of the majority. The QRx Case. 13 Gummow J at [96]; and, to a lesser extent, Gleeson CJ at [14]. Section 563A of the Corporations Act 2001 (Cth) provided: “Payment of a debt owed by a company to a person in the person’s capacity as a member of the company, whether by way of dividends, profits or otherwise, is … Comments (0) Add to wishlist Delete from wishlist. The article is here and reproduced below: Australia: The Sins of the Sons (of Gwalia) Are Visited on Creditors Yet Again July 27, 2007 Australia is sometimes referred to as "down under" for obvious geographic reasons. The purchase took place on the market conducted by the ASX. The administrators argued that it was Parliament’s intention that section 600H applies to administrations. For the importance attached to continuous disclosure laws, see Australian Securities and Investment Commission v Chemeq Ltd (2006) 58 ACSR 169; Sons of Gwalia Ltd … The Sons of Gwalia matter basically comes down to a decision of the High Court of Australia in January 2007 whereby by a shareholder was allowed to prove against the Company as a Creditor. 17 The concept of statut ory contract was discussed by McH ugh … appeal in Sons of Gwalia Ltd (Subject to Deed of Company Arrang ement) v Margaretic (2006) 56 ACSR 585; [2006] FCAFC 17. 2009: EY and Sons of Gwalia. ON 31 JANUARY 2007, the High Court of Australia delivered Sons of Gwalia Ltd v Margaretic [2007] HCA 1; (2007) 232 ALR 232; (2007) 81 ALJR 525 (31 January 2007).. The Corporations Amendment (Sons of Gwalia) Bill 2010 (Bill) will amend section 563A of the Corporations Act 2001 to postpone ‘subordinate claims’ made in external administration until all other claims against the company are satisfied. case should be abrogated by legislation in order to provide certainty in this technical area of the law. QRx was factually similar to Sons of Gwalia. Shareholders had anticipated making claims that false and misleading statements had induced them to purchase shares in the company. Also, Callinan J, the minority judge, at [224], observed that in light of the majority judgment in this case: His name was entered on the register of members on 23 August 2004. It is being labeled as an $800 million collapse, but the betting is that the company’s liabilities will top $1 billion when the debt on its balance sheet … It was the EBIT of the 'Advanced Minerals' (tantalum, silica sand, lithium and tin) that had everyone taking notice – that figure rose 31% to $34.2m. On 18 August 2004 Luka Margaretic bought 20,000 shares in Sons of Gwalia (SoG), a gold mining company based in Western Australia, on the Australian Securities Exchange (ASX). 16 See also, Sons of Gwalia, affirmed in the reasons of Gleeson CJ at [19]; cf reasons Kirby J at [118]. 11 Sons of Gwalia Ltd (subject to Deed of Company Arrangement) v Margaretic & Anor [2007] HCA 1. creditors’ rights.13 A good illustration of this is the Sons of Gwalia case itself. 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