re: shareholders class action (ladora)
Gwalia investors seek court order to access share register By John Phaceas Perth October 19, 2004
Page Tools Email to a friend Printer format The administrators of Sons of Gwalia are fighting to head off a potential multimillion-dollar class action from investors who bought shares in the failed miner's last weeks.
The Federal Court yesterday heard an application from specialist litigation funder IMF Australia seeking a court ruling that would allow it to contact Gwalia shareholders directly about its potential class action.
IMF, which is representing 20 Gwalia shareholders, took legal action after administrator Ferrier Hodgson refused to allow the group to use Gwalia's share register to contact investors who bought stock in the six weeks before the miner collapsed.
Under section 177 of the Corporations Act, third parties cannot use the register to contact or send material to shareholders without the company's approval, or unless the matter is "relevant" to the interests of shareholders.
Freehills partner Konrad de Kerloy told the court that the company and administrators intended to fight IMF's application, and said he doubted whether Gwalia or the administrators were the "appropriate" respondent.
Administrator Garry Trevor could not be contacted yesterday, but Gwalia's legal team argue the company and administrators have no role in enforcing section 177, and that jurisdiction rests with the Australian Securities and Investments Commission.
IMF managing director Hugh McLernon said yesterday that IMF had already served an application on ASIC, and that IMF believed investors who bought Gwalia shares between July 22 and the company's suspension on August 30 might be able to make a claim for their losses.
The hearing will resume on Friday.
- West Australian
SGW Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
