Sharechat Logo

Richmond demands all shares be forfeited

By Chris Hutching

Friday 1st August 2003

Text too small?
Meat company PPCS and listed rival Richmond were in the Court of Appeal this week where PPCS was seeking to have earlier High Court orders that it should forfeit shares it acquired in Richmond overturned.

Richmond and PPCS are two of the country's big-four meat companies so the outcome of the court case will determine the future structure of the meat industry although both parties are likely to appeal to the Privy Council regardless of the Appeal Court outcome.

Robert Dobson QC, acting for the minority Richmond shareholders, told the five judges they should order the forfeiture and divestment of all the shares PPCS owns because the company would be seen as having got away with serious and repeated breaches of the Securities Act.

The earlier High Court case upheld the Richmond assertion that PPCS used nominees and misled shareholders about its holdings in various substantial security holder notices.

Mr Dobson accused PPCS of a "pattern of concerted deceit" on several occasions including when it had been ordered to sell a portion of Richmond shares acquired in contravention of the Richmond constitution. PPCS later bought back those shares.

Alan Galbraith QC, acting for PPCS, said that the market had never been disadvantaged by PPCS actions. On the contrary there had never been a higher bid for the shares than the recent takeover offer from PPCS at $3.11.

Mr Galbraith said that ordering full forfeiture would be out of proportion to any offence. It would be like an 80% shareholder who acquired another 6% of shares in breach of notice and pause rules being ordered to sell the entire 86%.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Heartland Market Update
Steel & Tube Fy20 Trading Update
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria

IRG See IRG research reports