The Takeovers Panel plays a vital and integral role in resolving takeovers-related disputes during the bid period. It provides interested parties with an efficient means of resolving disputes without costly and time-consuming litigation.
The recent decision of the Full Federal Court in Alinta Limited v Takeovers Panel has created uncertainty in the takeovers market. The Court, by majority, held that section 657A(2)(b) of the Corporations Act 2001 is invalid on the ground that it confers judicial power upon the Takeovers Panel contrary to the Australian Constitution.
The decision undermines the objective that the Takeovers Panel be the primary forum for the resolution of takeovers disputes.
The Attorney-General will apply to the High Court for special leave to appeal the decision of the Full Federal Court to defend the validity of the challenged provisions of the Act.