Today Charter Pacific commenced an action in the NSW Supreme Court for specific performance by Chris Burke, director of Securicom, of the valid and binding Share Purchase Agreement under which Charter Pacific is entitled to acquire the shares in Securicom (NSW) Pty Ltd and Microlatch Limited (UK). Charter Pacific alleges that Mr Burke has unlawfully attempted to terminate the Share Purchase Agreement. Charter Pacific has asked the Court to order that Mr Burke comply with his contractual obligations and complete the transaction as it is documented.
In recent weeks Mr Burke has unlawfully breached and covertly transferred certain patents owned by the Microlatch group to a company controlled by him, CJ Burke Nominees Pty Ltd, without notice to his other shareholders and in breach of the Charter Pacific Share Purchase Agreement. Charter Pacific seeks orders from the Court, the effect of which will be, to freeze Mr Burke from all exploitation of the patents and have them transferred back to the Microlatch group to ensure Mr Burke’s compliance with his contractual obligations. As a result of the completion of this share purchase transaction Charter Pacific will control the Microlatch group patent portfolio.
In the meantime, judgment on the Microlatch group application to the Queensland Supreme Court to set aside the statutory demand served by Charter Pacific remains pending. Charter Pacific is confident of a successful outcome in those proceedings. In each set of proceedings Charter Pacific seeks an award of its costs against the Microlatch group. Charter Pacific will provide a further update on the progress of both sets of legal proceedings shortly.