Question

Choose one best answer from the following. Which of the following can apply for an injunction under s 1324 to restrain a company from paying a dividend:

Group of answer choicesAny creditor

Any shareholder

shareholders where the dividend payment will not be fair and reasonable to them, creditors where the dividend payment will materially prejudice the company’s ability to pay them

ASIC, shareholders where the dividend payment will not be fair and reasonable to them, creditors where the dividend payment will materially prejudice the company’s ability to pay them

Answer 1

First of all we should understand what section 1324 injunction state.

Section 1324(1)

Where a person has engaged, is engaging bor is proposing to engage in conduct that constituted, constitutes or would constitute.

1) a contravention of this Act, or

2) attempting to contravene this Act, or

3) aiding, abetting, counseling or procuring a person to contravene this Act, or

4) inducing or attempting to induce, whether by threats,promises or otherwise, a person to contravene this Act, or

5) conspiring with others to contravene this Act.

The court may on the application of ASIC or of a person whose interests have been, are or would be affected by the conduct, grant an injunction, on such terms as the court thinks appropriate, restraining the first mentioned person from engaging in the conduct and if in the opinion of the court it is desirable to do so, requiring that a person to do any act or thing.

So your answer is ASIC.