Re Enova Mining Ltd.; Ex parte Enova Mining Ltd. - (09 Jan 2024)

Order under Section 1322(4)(c) of the Corporations Act can be passed if the person to be relieved from civil liability acted honestly

Civil

In present matter, on 8 December 2023, the Plaintiff, Enova Mining Ltd (Enova), filed an originating process seeking orders under Section 1322(4)(a) of the Corporations Act, 2001 relating to contraventions in the appointment of its auditor in 2021 and 2022. The Plaintiff is an interested person who may seek relief, as required by Section 1322(4) of the Act. There is no evidence of any substantial misconduct, serious wrongdoing or flagrant disregard of the Act or the company's constitution to warrant refusal of the relief sought.

Enova also sought orders relieving the company and its current and former directors from any civil liability arising out of the contraventions of Sections 301(1), 302, 314(1), 327B(1)(a), 327C(1), and 344(1) of the Act by reason of the failure to have the appointment of Mr. Shute approved at the 2021 and 2022 annual general meetings.

Section 1322(4)(c) of the Act permits the court to make an order relieving a person from civil liability for a broad range of contraventions or failures, subject to the conditions in Section 1322(6) of the Act that the person concerned acted honestly and that no substantial injustice has been or is likely to be caused to any person. A pre-condition to making an order under Section 1322(4)(c) of the Act is that the person to be relieved from civil liability acted honestly. In the circumstances of this case, relief should be granted in the terms sought by Enova.

Tags : LIABILITY PROVISION APPLICABILITY