Monday, 12 November 2012
Last year, in Weinstock v Beck  NSWCA 228, the New South Wales Court of Appeal considered whether a company was able to issue preference shares when at the time of their issue there were no other shares in existence over which they would have a preference. The court was divided: the majority view, expressed by Handley AJA (with whom Giles JA agreed), was that the directors had the power to issue preferences shares and this power was unaffected by the state of the company's share register. An appeal was made and will be heard later this week in the High Court of Australia. Further details, including appeal documentation submitted by the parties, is available here. At the same time the court will hear, in related proceedings, an appeal concerning the scope of section 1322 of the Corporations Act 2001: see here.