Intersections and adaptations — Utilising corporate law principles to avoid Greenmail in developer-initiated multi-owned property terminations
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Abstract
There has been marked growth in the multi-owned property industry in recent decades. In addition, government policy is seeking to alleviate urban sprawl, placing reliance on infill redevelopment. These factors reinforce the importance of a system to efficiently terminate multi-owned properties without diminishing owners’ rights to too great an extent. Part 5.1 and chs 6 and 6A of the Corporations Act 2001 (Cth) (the ‘Corporations Act’) contain systems to effect a change of corporate control to a sole shareholder, while safeguarding minority rights through the prescription of procedural requirements including disclosure, facilitating objections via the review process, and setting an appropriate statutory threshold to effect changes in control. This article considers how the procedures and safeguards implemented in takeovers, compulsory acquisitions and schemes of arrangement under the Corporations Act may inform laws relating to the termination of multi-owned properties so as to overcome dissenting owners’ veto, while safeguarding those owners’ property rights.
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Australian Property Law Journal
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26
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Law not elsewhere classified
Law