When a DOCA Returns Value to Shareholders — Navigating Section 444G

John Park and Ryan Lennon of Dentons discuss the Western Australian Supreme Court’s decision in Re Lucapa Diamond Company Ltd, confirming that section 444GA of the Corporations Act permits the compulsory transfer of shares under a DOCA even where shareholders will receive a surplus return after creditors are paid in full, while emphasising that the Court’s primary focus remains whether the transfer unfairly prejudices shareholders and whether a scheme of arrangement may be a more appropriate restructuring mechanism.

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