Dr Aaron Timoshanko, a Senior Lecturer in the University of Southern Queensland School of Law and Justice, has published a new article titled 'A New Sheriff in Town? Section 596A and Shareholders' Newfound Powers'. The article appears in Volume 51 of the Australian Business Law Review. Here is the abstract:
"In the case of Walton v ACN 004 410 833 Ltd (in liq) (Walton), the High Court of Australia interpreted s 596A of the Corporations Act 2001 (Cth) in a way that benefits shareholders and former shareholders. Before this ruling, it was believed that examining company officers could only be done for the benefit of the company, its creditors, or contributories. However, post-Walton, eligible applicants, including shareholders and former shareholders, can now examine certain company officers about the examinable affairs of the company for their own benefit. This includes uncovering information about misconduct to potentially reclaim financial losses. As a result, there may be an increase in applications for eligible applicant status received by Australian Securities and Investments Commission and an overall increase in the enforcement of the Corporations Act."
No comments:
Post a Comment