The High Court recently granted an application for an exemption from the requirement to send the liquidator's six monthly report to every preference shareholder of the company in liquidation. In FCS Loans Ltd (in liq) v Fisk & Anor, the High Court granted the liquidators' application for an exemption on the basis that the cost of supplying six monthly reports to the 3,141 preference shareholders (estimated to be $4,719.16) is not proportionate to any likely benefit to those shareholders from having the reports mailed to them. It was also noted that the money saved by not sending the reports may well increase the dividend paid to eligible creditors.

The exemption was granted on the basis that the reports would be made available via the Registrar of Companies and the PricewaterhouseCoopers websites, and that the shareholders would be informed of the exemption, and of the availability of the reports online.

See court decision here.