Justice Jackman of the Federal Court of Australia has signalled the implementation of a more streamlined process for applicants seeking the Federal Court’s approval of a scheme of arrangement. His Honour noted that he had consulted to confirm that the proposed reforms were generally supported by the Justices of the Federal Court as a whole.
The proposal includes significant reductions in the evidence that is required to be produced to the Federal Court, as well as reduced requirements relating to approvals of shareholder communications. We consider that these reforms may lead to significant legal costs savings for scheme of arrangement applicants, making scheme approvals cheaper, more efficient and more timely.
The proposed streamlined process will apply to applications for the Federal Court’s approval of schemes of arrangement moving forward. It is anticipated that some of the Australian State Supreme Courts may follow suit in adopting this streamlined process.