A New Sheriff in Town? Section 596A and Shareholders’ Newfound Powers
Article
Timoshanko, Aaron. 2023. "A New Sheriff in Town? Section 596A and Shareholders’ Newfound Powers." Australian Business Law Review. 51, pp. 327-344.
| Article Title | A New Sheriff in Town? Section 596A and Shareholders’ Newfound Powers |
|---|---|
| ERA Journal ID | 33106 |
| Article Category | Article |
| Authors | Timoshanko, Aaron |
| Journal Title | Australian Business Law Review |
| Journal Citation | 51, pp. 327-344 |
| Number of Pages | 18 |
| Year | 2023 |
| Place of Publication | Australia |
| ISSN | 0310-1053 |
| Web Address (URL) | https://legal.thomsonreuters.com.au/australian-business-law-review-parts-bound-volumes/productdetail/72380 |
| 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. |
| Keywords | shareholders' powers, Corporations Act, s 596A, examinable affairs, examinable person, mandatory examination, eligible applicant |
| Contains Sensitive Content | Does not contain sensitive content |
| ANZSRC Field of Research 2020 | 480101. Banking, finance and securities law |
| 480699. Private law and civil obligations not elsewhere classified | |
| Public Notes | The accessible file is the accepted version of the paper. Please refer to the URL for the published version. |
| Byline Affiliations | University of Southern Queensland |
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