By ELLEN READ
South Island meat co-operative PPCS has failed to overturn an interim injunction preventing it from trading in Richmond shares.
The High Court dismissed the PPCS application and awarded costs to Richmond.
However, Justice William Young varied the injunction to allow PPCS - which has a relevant interest of 52
per cent in Richmond - to buy more shares in Richmond but still not to sell those it currently holds.
PPCS was trying to overturn an interim injunction that stops it from trading in Richmond shares until the High Court clarifies PPCS' status as a Richmond shareholder at a hearing scheduled for August 6.
Yesterday's decision stemmed from submissions from counsel in the High Court at Christchurch two weeks ago.
Counsel for Richmond, Bill Wilson, QC, said the main issue was whether the shareholding, both direct and indirect of PPCS in Richmond, should remain under the control of the court pending the August 6 hearing.
Richmond readily accepted that PPCS should be free to seek a court order for any transaction involving its shareholding, but it opposed a claim by PPCS that it should be free to do anything it wanted with its shareholding before the hearing, he said.
Since PPCS contended it had no current intention to dispose of its direct or indirect interest in Richmond shares, there was no justification for discharging the interim injunction, Wilson said.
Richmond, acting in the interests of its shareholders, sought resolution of whether all or some of the shares PPCS held in it were defaulter securities for the purposes of its constitution, he said.
Appearing for PPCS, Adam Ross said the potential damage to PPCS in the case of an injunction could be very high.
It would dislocate what was a major company from the market, and less drastic means should be favoured by the court, he said.
